Federal Budget 2019-20
BDO in Australia delivers a comprehensive analysis of the Australian Federal Budget each year.
This year, the budget will be handed down one month earlier than usual, before Australians head to the polls in May for the federal election.
When is the Federal Budget?
Federal Treasurer Josh Frydenberg MP will deliver the budget in Federal Parliament on Tuesday 2 April 2019.
The leader of the Opposition, Bill Shorten MP, will give the budget-in-reply two days later.
What are we expecting from this year’s Federal Budget?
With a predicted budget surplus and an election soon to follow, BDO is watching pre-budget announcements closely.
BDO has also responded to the Government’s invitation to make a pre-budget submission, making 28 recommendations in respect of taxation priorities in the upcoming budget period.
Our major recommendation concerns the reigniting of the tax reform process: specifically the establishment of an independent Tax Reform Commission to provide ongoing tax reform recommendations to Government.
Our submission also includes a plea to ensure transitional rules are put in place if any changes are made to the Dividend Imputation system.
Read BDO’s 2019-20 pre-budget submission.
With a budget and an election so closely connected this year, fiscal policy announcements are coming from both sides of politics. Recent media coverage has featured BDO partners on a number of budget- and election-related topics:
- SMSFs and Labor’s franking plan:
- BDO partner, Mark Wilkinson, spoke to The Australian Financial Review and commented that the Labor dividend proposal will make a significant difference to the overall rate of return derived by super funds using a dividend strategy. Read the full news article (access to AFR subscribers only).
- BDO national tax director, Lance Cunningham, spoke to The Australian Financial Review and called for a phased introduction of Labor's franking policy, accompanied by an education program. He said the refundability of excess imputation credits should be reviewed because the existing system was widely viewed as poor tax policy. Read the full news article (access to AFR subscribers only).
- Tax reform: BDO partner Neil Billyard explained to the Australian Institute of Company Directors why the time is now for holistic tax reform, and why the discussion should not be restricted to headline rates or specific concessions. Read the full article.
- Women’s superannuation: Women’s superannuation is shaping up to be a divisive policy issue for the federal election, and while some policies may make a meaningful difference, others are simply “tinkering at the edges”, says BDO partner Mark Wilkinson. Read the full news article on SMSF Adviser.
- Holiday homes and negative gearing: BDO tax partner, Tony Sloan, spoke to The Australian, saying that holiday houses would be worse off than city dwellings under the new Labor policies. “It will impact the city, but it’s always magnified with holiday houses because that’s decadent spending…Together with the elimination of tax deductions already for people to travel to rental properties, there may soon be no real business case for holiday houses under a regime where there’s no negative gearing.” Read the full news article (access to The Australian subscribers only).
BDO will keep you updated on developments leading into the 2019-20 Federal Budget - follow BDO in Australia on LinkedIn and Twitter.
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