What the return of a Coalition Government means for you

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What the return of a Coalition Government means for you

The Federal election outcome took most people by surprise. What does the return of a Coalition Government mean for you, particularly with regard to taxation, superannuation and business?

Most of what the Coalition has promised was announced in the 2019-20 Federal Budget delivered on 2 April. This includes:

  • A tax cut for those earning up to $126,000 per year, worth up to $1,080 a year for singles and up to $2,160 for couples. Delivery of the tax cuts is dependent on the passing of legislation prior to
    1 July 2019.
  • Minor changes to superannuation including work test changes to allow people to make voluntary contributions up to $500,000 between the ages of 65 and 67, and lifting the age limit for spouse contributions to 74 from the current 69.
  • An increase in the instant asset write off from $25,000 to $30,000 and eligibility expanded from businesses with turnover up to $10 million to businesses with turnover up to $50 million.

For more Federal Budget announcements, click below.

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In addition, the Coalition promised in the lead up to the election to allow eligible buyers to purchase a first home with a deposit of just 5 per cent or more of the purchase price under a government-backed guarantee. An income threshold of $120,000 for singles and $200,000 for couples is to apply.

First home borrowers will still have to borrow the remaining money from the bank and take out a larger loan but the Government will provide a loan guarantee on that 15 per cent to encourage banks to lend the money. This means some families will be taking out a 95 per cent loan to value ratio.