2019 Federal Budget - Business

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Apr 3, 2019 | Posted in Business Advice
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Small and Medium Business Instant Asset Write Off increased to $30k.

The instant asset write off has again been extended with the value of the depreciable asset able to be written off increased to $30,000. Additionally the turnover eligibility threshold increased to those businesses turning over up to $50 million.

Changes to Division 7A delayed to 1st July 2020

Originally the plan was to change all 7 year and 25 year associate loans from private companies and some trusts to a 10 year loan at an increased interest rate as of 1st July 2019. However due to significant concerns from practitioners and taxpayers, particularly around how existing and quarantined arrangements would be brought into the new regime, the government has decided to delay any changes to 1st July 2020. They have also stated they will conduct another consultation period after criticisms the previous timeframe was much too brief for changes with such wide ranging financial impact.

ABN holders continuing registration will be linked to tax obligations

ABN holders will be required to keep their income tax lodgements up to date in order to keep their ABN from 1st July 2021.

Additionally they will need to confirm their Australian Business Register details on an annual basis from 1st July 2022.

Finished Business: Initiatives from last year’s budget coming into force at 1st July 2019:

PAYG Withholding – denied deductions

For a business that does not withhold an amount of PAYG when it is required to, then that amount is considered a ‘non-compliant payment’ and you will be unable to claim a tax deduction. 

Unfinished Business: Initiatives still outstanding from last year’s budget:

  • Decrease benefits from R & D tax break (in senate still)
  • Superannuation Amnesty still not passed and set to expire next month (in senate still)
  • CGT for expats who sell Australian home (in senate still) (probably too harsh to pass)
Want to learn more about the budget?

Check out our 2018 budget summaries for the below categories. 
(Click on the images below to jump to these sections)




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