Federal Budget 2020-2021
“The road to recovery will be hard but there is hope” – Josh Frydenberg.
Touted as the most significant Federal Budget in decades, the Government’s 2020 delivery sets the scene for a slow climb back to surplus and out of the first recession in almost 30 years. This will be no soft-pedal event, but a back-to-basics focus on boosting the economy. It’s definitely time to ‘get back on the bike’ and start the journey towards recovery.
In a budget that is encouraging spending on many levels, there are loads of tax related measures for business, as well as a number of positives for individuals. Industry hasn’t been forgotten either with a number of supporting measures for Agriculture, Real Estate, Education, Infrastructure, Aged care and Child care.
Amongst the measures for business, the Treasurer has delivered a budget with a focus on the ABC’s:
- A is for Asset Write-offs – enabling businesses to deduct the full cost of new capital assets and for small and medium sized businesses, second –hand assets will also be covered.
- B is for Business Concessions – loss carry back provisions for businesses will be provided to offset current losses on to previous tax paid.
- C is for Cuts to personal tax rates – and also for Cash Handouts to pensioners and some other welfare recipients to stimulate the economy.
Finally, it’s worth highlighting the changing gears for business innovation with the paring back of the changes to Research and Development incentives.
With the rough and rugged trail carved out by the ravages of the pandemic, it will be an endurance ride for Australian businesses and the economy with the emphasis on getting the nation spending to smooth out the ride ahead.