2020/21 Federal Budget | What You Need To Know
The Australian 2020/21 Federal Budget is out!
There has never been a more pro-business budget than the one Josh Frydenberg handed down last night, containing almost $50B of business tax relief.
Here are the 5 key measures that will be of critical interest to your business.
- Instant Asset Write-Off: The centrepiece of this year’s budget is a massive extension of the instant asset write-off, which will enable almost every business in Australia to immediately write off any depreciable asset, with no limit on value. New assets purchased from now until 30 June 2022 will qualify, whilst second-hand assets will qualify through to 30 June 2021.
- Loss Carryback: The second measure is the loss carry-back scheme. SME businesses that make a loss in FY20, 21 or 22, will be able to ‘carry back’ the tax losses and get a refund of tax paid in 2019 or later years.
- Jobmaker: Next we have the JobMaker system, which will provide direct wage subsidies for apprentices or new employees aged 16-35 who have previously been on JobSeeker or similar benefits.
- SME Tax Concessions: The threshold for accessing small business tax concessions has been lifted from $10M to $50M, making a range of generous tax initiatives available for many more privately owned SMEs.
- Personal Income Tax Cuts: Backdated to 1 July 2020 so it has an immediate impact on the after-tax pay packet of individuals
We will be releasing more detailed analysis on the Budget over the coming days, but reach out to our team if you have any questions.
Quantum Advisory is a business accounting and advisory firm that empowers family businesses to step up, scale up and sell up. Visit www.qagroup.com.au or call 1300 700 711 and start the journey.