On 6 October 2020, the Treasurer, Mr Josh Frydenberg, presented the COVID-19 delayed 2020-21 Federal Budget. The Budget was directed at promoting spending, at a personal, business and government level to create jobs. There were many positive business measures, particularly for COVID-19 affected businesses, including the carry back of tax losses incurred to FY22 to be applied to profitable tax years from FY19, and the ability of any business with turnovers of up to $5bn to claim an immediate tax deduction for all depreciable assets acquired to 30 June 2022.
Individuals will have the second stage of the already legislated tax cuts brought forward to 1 July 2020, resulting in the 19% tax bracket being lifted from $37,000 to $45,000 and the 32.5% tax bracket lifted from $90,000 to $120,000. The low and middle income tax offset will also increase from $445 to $700. Low-and middle-income earners will also receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.
Businesses will also get cash grants of up to $200 per week for the employment of persons up to the age of 35 if the person was previously on Jobseeker, Youth Allowance or the Parenting Payment for at least one of the previous three months. Up to half of the wages for apprentices will also be subsidised (capped at $7,000 per quarter) until 30 September 2021.
Inside our Federal Budget 2020-21 Report:
1. 2020-21 Federal Budget Highlights
2. Personal Tax Rates
3. Business Tax Incentives including:
Company Loss Carry Back
Instant Asset Write Off Changes