Summary of Federal Budget 2020-21 headline measures:
- Immediate reduction in personal income tax. This will be reflected in employees regular pay, via a reduction in PAYGW, soon after the budget is passed by parliament.
- Ability for businesses with turnover less than $50 million to deduct the full cost of eligible new or used assets of any value purchased and installed after budget but before 30 June 2022.
- Companies with turnover less than $5 billion that incur a tax loss in 2019/20, 2020/21 or 2021/22, can have some of the tax paid in the 2018/19 or later years refunded.
- A wage subsidy paid by the ATO to eligible STP reporting employers who increase the number of their employees and hire someone between the ages 16 and 35 that received Centrelink benefits for at least 1 month in the last 3 months.
- From 1 July 2021, employees will be able to advise the ATO of their preferred superannuation account, of which will become their default account with any new employers.
- Pensioners and some other Centrelink recipients will receive two $250 payments; one from December, and the other from March.
Please contact our office should you wish to discuss any of the budget measures and how they may apply to your individual circumstances.