The Government is spending - here’s how it might affect you:
1. Increased asset write-off thresholds
- Existing $150K instant asset write-off threshold extended to 30 June 2021 - essentially applies to assets already purchased but not yet installed/used
- No depreciation limit on assets purchased from 7.30pm 6 October 2020 and first installed or used prior to 30 June 2022
2. Small business loss carry back
- Companies will be able to offset losses against previous taxable profits to generate a refund of previously paid tax
- Losses available to carry back from FY2020, FY2021 and FY2022 to offset taxed profits from 2018-19 or later income years
- First opportunity to obtain the refund will likely be on lodgement of FY2021income tax return
3. Personal tax cuts
- Previously announced personal tax cuts have been brought forward effective 1 July 2020
- Low and middle income earners will receive tax relief of up to $2,745 for singles, and up to $5,490 for dual income families
4. Jobmaker hiring credit
- Cash rebate to employers who hire eligible employees aged 16-35 (employee must have also been recipient of JobSeeker, Youth Allowance (Other) or Parenting Payment for at least 1 of the previous 3 months)
- Credit of $200/week for those aged 16-29 and $100/week for those aged 30-35
- Employees required to work a minimum 20 hours/week and employers demonstrate an increase in headcount and payroll spend for each new position
5. Apprentice support
- Enhanced support to all business irrespective of size to receive a wages subsidy of 50% of an apprentices wages up to cap of $7,000/quarter
- Capped at 100,000 new apprentices
- Available until 30 September 2021
6. Small business tax concessions
- Existing provisions extended to businesses with turnover up to $50 million
- Allows access to immediate deductions for start up costs and prepaid expenses
- From 1 April 2021 will allow access to some FBT exemptions - car parking and portable electronic devices
- Simplified GST and trading stock rules
Please reach out to your Maxim advisor if you have any questions on how the above will apply to you.
Scott Brooks
Partner
