The Government’s 2020 Budget secured passage of legislation and contained some important measures, as summarised below:
The Government brought forward ‘Stage two’ of their Personal Income Tax Plan by two years, so that, from 1 July 2020:
- The low-income tax offset increased from $445 to $700;
- The top threshold of the 19% tax bracket increased from $37,000 to $45,000; and
- The top threshold of the 32.5% tax bracket increased from $90,000 to $120,000;
- In 2020/21, low and middle-income earners will receive a one-off additional benefit of up to $1,080 from the low and middle-income tax offset.
- Businesses with a turnover of up to $5 billion are now able to immediately deduct the full cost of eligible depreciable assets as long as they are first used or installed by 30 June 2022.
- The Government will also temporarily allow companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid.
- Businesses with an aggregated annual turnover between $10 million and $50 million will, for the first time, be able to access up to ten small business tax concessions.
- Under the changes passed by the Parliament, the Government will also enhance previously announced reforms to invest an additional $2 billion through the Research and Development Tax Incentive.
Please email or call David Howells on (02) 4455 5333 if you require further information.