The Government announced a large number of expenditure measures which are aimed at kickstarting the economy. Many of these items have a smaller budgetary cost and are targeted at certain businesses and industries. Below is an overview of these measures.
The Government has announced the “Your Future, Your Super” package to improve the superannuation system and has confirmed a number of previously announced measures to apply from 1 July 2021.
Certain Fringe Benefits Tax (“FBT”) exemptions will now apply to businesses with turnovers between $10 million and $50 million. Retraining of redundant and redeployed employees will also be exempt from FBT. Record-keeping requirements may also be reduced in future.
The Government continues to expand the list of countries with exchange of information agreements, providing access to lower withholding tax rates and driving inbound investment opportunities into Australian managed funds.
The Government will introduce key corporate tax residency amendments for foreign incorporated companies, alongside a handful of minor international tax measures.
The Government has announced changes to the R&D tax incentive that will reverse many of the previous R&D reform measures introduced during the 2018-19 Budget and defer the start date to 1 July 2021.
In the midst of global economic uncertainty, it is no surprise that the Federal Budget 2020-21 is focussed on the roll-out of an enormous Government spending program, supported by a wide range of quickfire measures to encourage business investment and job creation. Whilst not focussed on long-term structural reform, the Budget is pragmatic in the circumstances.
Significant measures have been announced to support capital investment by business through an expanded instant asset write-off regime, coupled with a tax loss ‘carry-back’ rule which may provide additional cash to businesses. Additional measures are to be introduced to ensure certain Victorian Government Business Support Grants are not taxable. Return to Federal Budget hub Significant […]
We recently asked for your input on the key issues and policy areas most important to you ahead of this year’s Federal Budget.
The Commissioner has released details of the alternative tests that will apply for the purposes of JobKeeper 2.0. These alternative tests will apply where the actual decline in turnover test is not otherwise satisfied in relation to the September or December 2020 quarters.
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