2019 Federal Budget

We’ve broken down the key themes of the 2019 Federal Budget, so you can see how this may affect you.

Young People

Families

Retirees

Businesses

Regional

Young people

  • $200.2 million over four years to support up to 80,000 new apprenticeships in industries with skills shortages
  • $132.4 million over four years to further improve the quality of the Vocational Education and Training (VET) system and pilot new skills organisations in key areas of future job growth
  • $263.3 million over seven years to improve access to youth mental health services across the national headspace network
  • $67.5 million over five years to trial 10 national training hubs to support school-based vocational education in regions with high youth unemployment
  • $62.4 million over four years from 2019-20 to expand second chance learning in language, literacy, numeracy and digital skills to upskill at-risk workers.

Families

  • Tax relief for low-and middle-income earners of up to $1,080 for singles or up to $2,160 for dual-income families. The offset will be available for the current tax year and up until 2022
  • Personal income tax rates will be reduced from 2024-25, with the Government replacing the 32.5% and 37% thresholds with a single 30% threshold
  • The low-income threshold for the Medicare levy will be increased from 2018-19. The family threshold will rise from $37,089 to $37,794. The threshold for singles will be increased from $21,980 to $22,398. For each dependent child or student, the family income thresholds increase by a further $3,471, instead of the previous amount of $3,406
  • $187.2 million to bring forward the indexation of all remaining GP services items on the Medicare Benefits Schedule (MBS) to 1 July 2019. Ultrasound and x-ray diagnostic imaging items will also be indexed from 1 July 2020 at a cost of $198.6 million
  • $328 million over four years from 2018-19 towards initiatives to reduce domestic and family violence against women and children. The initiatives include $64 million in additional funding over two years to ensure that 1800RESPECT can meet forecast increases in demand, and $75.4 million to provide emergency accommodation for women and children escaping domestic violence.

Retirees

  • Increases to the Medicare levy threshold from the 2018-19 income year. For single seniors and pensioners, the threshold will be increased from $34,758 to $35,418. The family threshold for seniors and pensioners will be increased from $48,385 to $49,304
  • $282.4 million over five years from 2018-19 for an additional 10,000 home care packages
  • $320 million in 2018-19 for a one-off increase to the basic subsidy for residential aged care recipients
  • $185 million from 2018-19 to 2028-2029 to establish a new mission for dementia, ageing and aged care
  • Those aged 65 and 66 can make voluntary superannuation contributions (both concessional and non-concessional) without meeting the work test from 1 July 2020. People aged 65 and 66 will also be able to make up to three years of non-concessional contributions under the bring-forward rule. Those up to and including age 74 will be able to receive spouse contributions, with those 65 and 66 no longer needing to meet a work test.

Businesses

  • Increasing the instant asset write-off threshold to $30,000 and expanding access to businesses with an annual turnover of up to $50 million
  • Fast-tracking the company tax rate cut to 25% for small and medium?sized companies with an annual turnover of less than $50 million by 2021-22
  • $1 billion over four years to extend funding for the ATO’s Tax Avoidance Taskforce, which targets multi-nationals, large public and private groups and high wealth individuals
  • Employers will be eligible for a $4,000 incentive payment under the Additional Identified Skills Shortage Payment. Apprentices will be eligible for $2,000, paid at key milestones in their apprenticeship
  • $30.7 million to pay compensation owed to small businesses from unpaid external dispute resolution determinations dating back to 1 January 2008.

Regional

  • $3.9 billion towards the Future Drought Fund which will be established in July 2019. This fund aims to enhance future drought resilience, preparedness and response across Australia
  • $206.2 million for round four of the Building Better Regions Fund for regional infrastructure projects, and community events and activities
  • $60 million to improve internet and mobile services in regional Australia
  • $45.5 million to establish Cancer Treatment Centres in regional Australia for radiation therapy
  • $29.4 million over four years to enhance agricultural exports and trade by breaking down barriers for exporters, reducing the impact of policies other than tariffs and addressing pest and disease risk.