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2019 Federal Budget

How will the budget impact you?

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.

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