The government has released the 2020/21 federal budget that will help soften the blow of the global pandemic and focused on boosting the economy. The program tackles different tax-related measures for businesses – aimed at slashing taxes and putting Australians who lost their jobs back into work. Those who stand to gain and benefit from it are likely those who have lost the most during the COVID 19 pandemic (small businesses, part-time workers, and young people).
The budget brings forward tax cuts for lower and middle-income earners which will be backdated to July 2020. The Government will also retain the low and middle-income tax offset for an additional year providing further relief.
ON BUSINESS SUPPORT:
The 2020/21 federal budget includes a range of measures designed to encourage established businesses to spend on plant and equipment, invest in research and development, and also hire or retain workers.
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.
There is also a relief for businesses that have been “doing it tough” during the pandemic, with a measure which will enable them to use their losses earlier.
To encourage businesses to hire younger Australians, the government has announced a new program called Job Maker, 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.
The government estimates that the combination of the immediate expensing of capital expenditure and loss carry-back measures will create an additional 50,000 jobs nationally.
$14 billion invested in new and accelerated projects over the next four years. Providing 40,000 jobs during their construction.
INSTANT ASSET WRITE-OFF:
Businesses with turnover up to $5 billion will be able to instantly write-off eligible asset purchases. The deadline for purchases is 30 June 2022.
ON HEALTH MEASURES:
$16 billion FOR covid19 health measures, includes doubling the amount of government-subsidized mental health services.
$47.4 million invested in ocean protection and restoring marine health. Additional 29 .1 million into the reduction of chemical contamination risk on commonwealth land.
(source: CPA Australia on Federal Budget 2020/21 overview)