FEDERAL BUDGET 2019 SUMMARY
Sarah Healey, 10 April 2019
The 2019 Federal Budget was released last week with the big winners being wage earners, small and medium business, building and transport industries, older Australians, the health sector, education, rural areas and the superannuation industry.
The most interesting announcement to SER was the changes to the proposed expansion of the instant asset write-off to $30,000 and the inclusion of medium sized businesses as being eligible.
Small businesses (with annual turnover of less than $10mil) will be able to immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from Budget night up until 30 June 2020. This was in addition to the previously announced increase from $20,000 to $25,000 from 29 January 2019 to Budget night.
This creates a little headache for accounting staff but a boost for business, if the proposed legislation is enacted, by splitting the asset write-off thresholds in the 2019 financial year to:
1. less than $20,000 – 1 Jul 2018 – 28 Jan 2019
2. less than $25,000 – 29 Jan 2019 – before 7.30pm (AEDT) on 2 Apr 2019
3. less than $30,000 – from 7.30pm (AEDT) on 2 Apr 2019 – 30 June 2019
The addition of medium sized businesses to the eligibility list was a big win for medium sized business (with annual turnover of between $10mil and $50mil).
HOW WILL THIS AFFECT SER’S VENDORS AND THEIR CUSTOMERS?
There will be no change to the way our vendors go about their business, but their customers and funders will be able to take advantage of these changes, when the legislation is enacted, regarding eligible Chattel Mortgages and certain HP Agreements.
If you have any questions about any SER offering please feel free to contact your Account Manager.
Please note: As this information is general in nature and does not constitute financial advice SER believes it important to consider the appropriateness of the information having regard to your objectives, financial situation and needs and SER always suggests the reader seeks the appropriate legal, tax, and other professional advice.
Financial Controller, S.E. Rentals
S.E. Rentals are the finance as a service specialists that will help you grow your business by providing finance solutions in an 'all things technology' future. We provide you with the flexibility, scalability and agility to help you achieve your Managed Service objectives, and our unique in-house software platform, Finance Oxygen, automates the process for you