There are a number of small business initiatives announced in tonight’s budget! These budget 2020 initiatives will help small business as they plan to recover from 2020 COVID devastation.
Budget 2020 boost for small business well needed !
Tax cuts backdated to July 1 adjusted in PAYGW. – yes !! – looks like the opposition will support this.
Small business will be able to offset losses against previous years profits on which tax has been paid. The refund from this measure can be obtained when lodging their tax returns in the years 2020 and 2021. Losses incurred in the years 2021 or 2022 can be reversed back against profits made in 2019 onwards. Great to help small business – as your small business accountant we can help you plan if you can use this measure by utilising this and the asset right off rules!
From tonight until 30 June 2022, small business will be able to deduct the full cost of eligible depreciable assets. These assets can be of any value in the year they are installed. . It should be noted the items must be depreciable assets not buildings or land
Refundable R&D tax offset set at 18.5 percent above the company tax rate. 1st July 2021. Talk to us about your R&D plan. We have helped many small businesses with their R&D claims. We can assist you in submitting your innovative R&D project and obtain some great R&D credits.
Clearly, COVID has impacted small business greatly so these measures will be most welcomed and hopefully reignite our economy.
More funding for mental health – great news my local GP has been overrun with mental health matters due to Covid Lockdown!Geoff Gartly – passionate accountant for small business
As of 11th April 2021 (next FBT year), small business will be exempt from fringe benefits tax on some items. These expenses include car parking, electronic devices such as phones or laptops, provided to employees. Small stuff that shouldn’t be subject to FBT any way.
Jobmaker is here
JobMaker Hiring Credit helps businesses with incentives to take on additional employees. These employees are young job seekers aged 16 to 35 years old. A “JobMaker hiring credit” of $200 per week for every worker aged up to 30. A smaller amount of $100 a week if they hire an eligible person aged 30 to 35 years,
This credit is payable for the next 12 months for at least 20 hours per week.
Apprentice subsidy for a business who engage an Australian apprentice or trainee from yesterday until the quota of 100,000 traineeships cap is reached. Employers will be eligible for a 50 per cent of the apprentice wages for a new or recommencing apprentice or trainee for the period up to 30 September 2021, up to $7,000 per quarter.
Of course this is all subject to Parliament support and legislation passed by both houses of parliament.
Any questions drop me a line on 95979966