Budget 2009 – Tax Cuts

By FutureNestEgg | May 14, 2009

Last year the Government promised a two part personal income tax cuts. The second part of this tax cuts was due to be announced in this budget. There was a lot of media speculation that the Government will scrap these cuts – but the Government kept its promise. The tax cuts were announced in budget 2009. The cuts across the board – Employees on $40,000-$60,000 a year will receive an annual tax cut of $300, while higher-income earners on $120,000 will receive an annual cut of $950.

In Budget 2009, the Government also announced some tax relief for small businesses whose turnover is up to $5 million dollars. The tax cut is to help them out during these tough times. Currently for capital assets over $1000 business owners get a 30% tax deduction. This has bee increased to 50%. Cars, computers or upgrades to equipment are all eligible capital assets. If the business buys a computer for $2000, currently there is a deduction of $600 but from July 1st the deduction is $1000.

If you are a small business owner and/or have some thoughts/comments on this increase in tax break, please share your comments below.

Other Budget 2009 Posts:

Changes For Carers’ Income

Pension Income and Pension Age Changes

Superannuation Changes

Paid Parental Leave

Private Health Insurance Changes

First Home Buyers Grant Boost

Budget 2009 Winners and Losers