The 2020 Federal Budget, delayed by five months, prepared amidst a once-in-a-century pandemic that has ravaged the economy and up-ended so many norms of life, has now revealed the next chapter of this saga.
Those measures include the JobKeeper program, Cash flow boost, JobSeeker supplement, business loan guarantee program, and other support measures. However, those support measures are slowing phasing out, and minimising the down has come at a cost. The Government must now turn toward building the recovery out of the COVID-19 recession.
We set out a summary of the key measures announced affecting business and individuals.
1 July 2022 tax cuts brought forward to apply retrospectively from 1 July 2020. Reduction in PAYG withholding to be condensed into November 2020 to June 2021 eight-month period.
Annual group-wide turnover limit for access to various concessions to be increased from $10 million to $50 million.
Removal of FBT on the cost of training employees who are moved to different role in the business.
Changes to previous announcements and start dates.
Program to improve regulator culture and understanding of business, and promote fit-for-purpose regulation.
$1.5 billion over four years, to help build scale and capability, and a new supply chain resilience initiative.
$1.2 billion for a 50% wage subsidy, for new apprentices, regardless of geographic location, occupation, industry or business size.
$110 billion over 10 years, including $9.7 billion during 2020/21. Mostly for fast-tracked road and rail projects.
Simplified processes, to reduce time and cost for accessing credit.
Full deduction for most businesses for the entire cost of depreciating assets.
Deduct tax losses against prior years’ profits, obtain tax refund.
$200 or $100 per week credit for new hires of eligible employees.
For a comprehensive and detailed summary of the 2020 Federal Budget, make sure to see our highly anticipated Federal Budget Guide.
The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.