The Treasurer delivered the Federal Budget on 6 October 2020.

The announcements include almost $50 billion in tax relief for businesses and individuals with a hope to return the economy to financial health as Australia experiences its first recession in almost 30 years.

What are the major tax implications of the recent budget?

FOR BUSINESSES

  • Temporary loss carry-back to support cash flow
  • Temporary full expensing to support investment and jobs
  • Research and Development Tax Incentive — supporting Australia’s economic recovery
  • JobMaker – new incentives for hiring employees
  • Increase the small business entity turnover threshold
  • Fringe Benefits Tax — exemption to support retraining and reskilling

FOR INDIVIDUALS

  • Changes to tax brackets
  • Low and Middle-Income Tax Offset
  • Exempting granny flat arrangements from capital gains tax

If you need any help with any tax advice or any other accounting advice, give our team at SPS Business Consultants a call on ☎️ (03) 9904 9261.

Sources – https://budget.gov.au/index.htm, https://www.minterellison.com/articles/federal-budget-highlights-2020-21