Treasurer Josh Frydenberg released Australia’s federal budget on Tuesday night, detailing steps the Government intends to take in order to boost the economy and recover from the impact of the COVID-19 pandemic.
The government forecasts a record $213.7 billion deficit, with net debt to peak at $966 billion by June 2024. They expect unemployment to peak at 8% in December 2020. Due to this, the government will remain focused on creating jobs.
A summary of points of the budget for business include:
- Companies can offset trading losses against previous profits which has had tax paid. This will generate tax refunds. This can be done up to the 2021-22 year and can be applied back to the 2018/19 year
- Eligible depreciable business assets can be fully written off regardless of the value. This can be done up until 30 June 2022
- A $200 per week credit for every worker aged up to 30 payable for the next 12 months for new hires
- Victorian government grants are tax free paid after 13 Sept 2020
- There are a number of tax changes including no FBT on car parks or portable devices, simplified trading stock rules, remit of PAYG instalments
- No specific changes to SMSF
For a more in depth analysis of the 2020-21 budget , please follow the below link.
If you are unsure how these changes will impact you and your business, please contact our team.
** Please note this information was current as at 7th October 2020 and is intended to be general in nature.