• Main Measures

Main Measures - Federal Budget 2020-21

Temporary full expensing of capital assets

The Government has announced a temporary measure to allow businesses to claim an immediate deduction for the full cost of eligible capital assets.

Loss carry-back for companies

The Federal Government has announced a temporary tax relief by allowing eligible companies to carry-back tax losses made in the 2020 to 2022 income years’ to offset tax paid on profits from the 2019 income year onwards. This refunding of tax previously paid to the ATO when a loss is subsequently incurred is descried as a ‘loss carry-back’.

JobMaker Hiring Credit

In an effort to promote employment growth, the Government has committed four billion dollars over the next three years in the form of JobMaker Hiring Credits to eligible employees aged 16-35 years.

Apprenticeship wage subsidy

As a part of the ‘job-centric’ 2020 Budget, the Government will provide $1.2 billion from 2020-2021 to increase the number of apprentices and trainees employed. This investment will be made over four years and is accessible to businesses of any size.

Research and Development Tax Incentive

The Government has announced an about-face to Treasury Laws Amendment (Research and Development Tax Incentive) Bill 2019, which was due to apply in its current form, retrospectively for income years commencing on or after 1 July 2019.

JobMaker Plan - Global Business and Trade

The Government has announced measures under the JobMaker plan to improve inbound business and talent migration to Australia, as well as to modernise Australia’s trade system and reduce the complexity of border services. These welcome changes will facilitate increased international connectivity and provide Australian businesses with greater access to the world’s most eminent talent.

Expanding Access to the Small Business Tax Concessions

The Government has announced plans to increase the turnover threshold for Small Business Entities (SBEs). Eligibility for the concessions has been increased to medium-sized entity tax payers with an aggregated annual turnover of greater than $10 million but less than $50 million. While this is great news, taxpayers will have to wait until the next financial year to reap the benefits.

Fringe Benefits Tax amendments

The Federal Budget includes a number of Fringe Benefits Tax (FBT) amendments.

Personal Income Tax Cuts

The Government has announced a temporary measure to allow businesses to claim an immediate deduction for the full cost of eligible capital assets.

Stimulus Payments for Social Security Recipients

Some of Australia’s most vulnerable individuals can expect to receive stimulus payments as part of a three year $2.6 billion social security relief package in the Government’s 2020/2021 Budget. In a departure from the Budget’s job-creation focus, payments were announced aimed at pensioners, carers, and disability card holders. These are expected to provide much-needed economic relief to over 5.1 million recipients.

Exempting granny flat arrangements from Capital Gains Tax

With the current capital gains tax implications acting as a hindrance to families looking to implement formal and legally enforceable granny flat arrangements, the Morrison Government will remove these impediments by introducing a capital gains tax (CGT) exemption.