The areas most relevant to businesses have been linked to more detailed articles below. The key announcements include:
Taxes
- Individual income tax rate cuts retrospectively to 1 July 2020, mainly impacting middle-income earners.
- Increase in the low income tax from a maximum rate of $445 to $700
- Extension of the low and middle income tax offset to the 2021 income year
Job Creation
- JobMaker Hiring Credit available to certain employers creating additional jobs in a 12 month period ending 6 October 2021 for eligible employees between 16 to 35 years of age
- Additional wage subsidy support for new apprentices
Small Business
- Businesses with turnover of less than $5 billion can deduct the full cost of eligible capital assets purchased after 6 October 2020 and first used or installed by 30 June 2022
- Second-hand assets costing less than $150,000 can be fully deducted for businesses with turnover between $50m - $500m
- Companies with turnover of less than $5 billion will be entitled to offset company losses against previous year profits on which tax has been paid generating a current year refundable tax offset
- FBT exemption for employers providing retraining and reskilling benefits to employees
Welfare
- Two additional economic support payments of $250 to pensioners and other eligible recipients
- Extension of the JobKeeper payment scheme until 28 March 2021 for eligible employers
- Extension of the Coronavirus supplement until 31 December 2020
Superannuation
- ‘Stapling’ superannuation members to existing superannuation accounts, meaning Australians will automatically keep their superannuation fund when they change employers
- A new, interactive, online YourSuper comparison tool, empowering members to decide which super product best meets their needs
- MySuper products will be subject to an annual performance test, where funds underperforming will need to inform their members
Miscellaneous
If you would like more information on key measures we have covered you can follow the links above on specific topics or visit the Government's Federal Budget page.
Discussing your situation with a trusted accountant is a good way to assist in setting up a clear direction and plan for you and your business. We welcome you to talk with us to receive real advice and support that will benefit you.