Budget 2020-2021

Updates for small business and individuals

 

Dear Valued Customers,

 

We would like to update you on Federal Budget 2020-21 in relation to small businesses and individual tax affairs.

 

For Businesses

 

  • Lower Company Tax Rate Changes

 

The lower company tax rate will reduce for base rate entities (27.5%) to 26% in 2020–21 and to 25% from the 2021–22 income year. Please refer to Company tax rate table below:

 

  • Established Businesses

 

  • The Instant Asset Write Off for businesses will be extended to businesses with a turnover of up to $A5 billion and will be further extended until June 2022. Previously it was designed to apply up to 31 December 2020.
  • Losses incurred to June 2022 can be offset against prior profits made in or after the 2018/19 financial year.
  • To encourage businesses to hire younger Australians, the government has announced a new program called JobMaker, which will contribute $A200 per week, payable for one year, towards the hiring of people aged 16-35 who are currently on JobSeeker. The payment for those aged 30-35 is $A100 per week.

For individuals

 

  1. Individual Income Tax Rate Changes

 

Stage Two of the legislated tax cuts will be brought forward by two years, lifting the 19 per cent threshold from $37,000 to $45,000, and the 32.5 per cent threshold from $90,000 to $120,000. Please refer to Individual tax rate table below:

 

Should you have any inquiry regarding above matter, please do not hesitate to contact us.

 

Thank you.