Switzer Budget Breakfast 3rd April 2019

Budget summary courtesy of EO Sydney Member Lance Lai who attended the breakfast sponsored by Glen Sealey from Maserati.

1) Switzer coined this budget the “Pig Rodeo Budget” the picture paints a thousand words – this Government is not just doing Classic “Pork Barrelling” in the lead up to an election, they’re riding the pig hard as if they are at a Rodeo cheering with “high 5’vers” all around, giving something for everyone, and not many nasties.

2) I thought I’d give you my biggest take away first. Paul Rickard (Peter Switzer’s Business Partner and founder of Commsec) believes that the tax benefits amount to 18% for properties purchased prior to January 2020 compared to those purchased after January 2020.

As the market begins to digest this, properties in Australia should begin to rise as the year progresses leading into January 2020. Is he saying the Property Market will bottom this year?

If Team Switzer is correct, it will be welcome news for us property owners.

For all those looking to buy in this property market dip, now might be the time to put in a bid or two.

For different reasons, Paul’s timing views seem valid and has a range of implications.

3) An Economically Stimulatory Budget with Tax Rebates of $1,080 for individuals with incomes less than $90,000, and phasing out between $90,000 to $126,000. This means an average household with 2 working partners will get an extra $2,160 in the hand. This will be good for discretionary spending so retailers like JB Hifi, Harvey Norman and automotive product retailers like Bapcor will get a boost.

4) Small business instant Asset write off of assets up to $30,000 and up to 30 June 2020 for businesses with turn overs of up to $50 million. This is great news!

5) 25% company tax rate for companies with turn over less than $50 million by 2021/22.