The Federal Budget was passed down in May and there was a lot of press coverage on some aspects; but what about your business? We’ve explored some of the key takeaways for businesses below.
How the Budget could impact your business
- Increase capital expenditure
Under the proposed Budget temporary full expensing is extended until 30 June 2023. This means you can deduct the full cost of any assets purchased and installed ready for use between 6 October 2020 and 30 June 2023. Great news!
- Use of business losses
The loss carry back has extended the loss years in which an eligible company can currently carry back a tax loss to include the 2023 financial year.
- ATO debt recovery relaxed
The Administrative Appeals Tribunal (AAT) will be given power to pause or modify ATO debt recovery action in relation to disputed debts of small business.
- More super
The super guarantee charge (SGC) will now be payable on the first $450 of ordinary times earnings. There was no legislation passed on the increase of SGC at a rate of 10%.
- Intangible Asset depreciation flexibility
We now have the option to self-assess the effective life of certain intangible assets like intellectual property and in-house software.
- Brewers and distillers increased cap
The excise refund cap for small brewers and distillers will increase to $350k from 1 July 2021 – great news for some of our clients!
- Industry boosts
The Federal Budget provides a further $2.1B in targeted support for aviation, tourism, arts, and international education of the back of Covid-19.
- Job Trainer commitments
Doubled commitment to JobTrainer funding to help create new apprenticeships and traineeships.
- Go Digital
The government announced $1.2b to build digital infrastructure, skills, and cyber security.
- Launching a new patent box
Income earned from new patents developed in Australia will be taxed at a concessional rate of 17%. This will apply to medical and biotech sectors.