Click here for our 2020 Federal Budget Guide.
The Federal Budget delivered last night was certainly unlike any other delivered in my lifetime.
There were range of significant announcements very much geared to get an economy up and running again.
Our briefing paper outlines the various announcements. And I do say announcements as that is all a budget is. The various announcements still have to be legislated; even those that are backdated to 1st July 2020.
So far today I have read through a number of briefing papers and have attended one research house webinar with another one this afternoon. And what is already proven to be the case yet again is that what has been discussed in the press after the budget is a rather narrow reflection of the changes and what they mean.
Over the coming days, we will learn more about these changes, we explore how you can benefit from them and will adapt our pre-year-end tax planning checklist. So keep an eye out for further examination of the ways you can benefit from this budget.
In the meantime though I would like to highlight what I believe to be the five biggest changes for most people with a bias towards business owners:-
Accelerated reduction to personal tax rates.
An uncapped limit on writing off the cost of a new business asset – for all but effectively the largest businesses.
Companies which made losses in the 2020 year or do so in 2021 and/or in 2022 can claim back tax paid in or after the 2019 tax year. You will hear a lot more about this particular in conjunction with the instant asset write-off.
A JobMaker hiring credit of up to $200 per new employee.
Fringe Benefits Tax announcements (which is the most misunderstood tax and an area in which the ATO is successful in 50% of their audits).
We look forward to exploring and systematically explaining to you how you will benefit from these announcements – so you will hear more from us. Please though don’t hesitate to contact us should you have any query.
At MRS, we will spend today planning for your success.