2019 Federal Budget: What can families and businesses expect this year?

Tim Lyford, Chair of Bentleys’ Tax specialist advisory group, shares his views on the likely outcomes of this year’s Federal Budget on Your Money.

2019 is a year of incredible disruptive change with multiple royal commissions, a federal election, and international political and trade instability. What impact, if any, will these factors have on the Federal Government’s reform agenda?

On federal budget night, 2 April 2019, we expect Treasurer Josh Frydenberg to confirm the $30 billion plus cumulative surplus that is likely to accrue between now and 2022. How will the Federal Government spend this surplus? Among his announcements we expect:

For individuals

Further tax benefits for lower income earners via an increase in the lower income tax offset.
Cash benefits for elderly Australians to help cover rising energy bills.
Family focused incentives, including more provision for women and children fleeing family violence.
No further changes to personal tax rates.

For businesses

Continued support for small to medium sized businesses.
Support for export businesses, particularly through the export development grant.
Further enhancements to Australia’s innovation agenda.
Further investment in infrastructure, and training and skills.