On 6 October 2020 the Federal Treasurer, Josh Frydenberg, delivered the Federal Budget for the 2020–2021 income year. It will be remembered as Australia’s biggest spending budget with a forecast deficit of $214 billion for the 2021 fiscal year. Treasury’s underlying cash balance will deteriorate by $480.5 billion over the forward estimates period.
The budget makes for compelling reading for anyone in business as it contains some very significant tax concessions and changes. These include:
- The bringing-forward of the stage 2 personal tax cuts so that they commence on 1 July 2020.
- An ability to fully deduct the cost of depreciating assets if a business has a turnover of less than $5 billion (yes, billion).
- Extension of small business concessions (not CGT) to businesses with a turnover of less than $50 million.
- Improvements to the R&D concession.
- Loss carry-back for companies.
- Increased FBT concessions and easier FBT compliance.
- Changes to the corporate residency definition.
We have worked to get across all of the budget changes – take a look at our attached highlight summary of all the major announcements and get in touch with your usual Quantum Partners contact if any further information is required.
