The annual budget for 2020/21 has been released with some added benefits to employers. Here are some of the key changes:
Game Changing Update to the Instant Tax Write-Off
The Treasurer announced a significant change to the Instant Tax Write-Off. Businesses will now be able to write-off the full value of any eligible asset purchased for their business. The scheme will be available for small, medium and larger businesses with a turnover of up to $5 billion, until 30 June 2022.
Instant Tax Write-Off Applies to Second-Hand Equipment
Businesses with a turnover under $50 million can claim an immediate tax deduction for second-hand assets purchased and installed between today and 30 June 2022. Business with a turnover $50 million to $500 million can claim that same deduction for second-hand assets costing up to $150,000 if they are purchased by 31 December 2020 and installed ready for use by 30 June 2021.
Tax Relief for Business
Special measures have also been announced for Australian businesses who went from being profitable to loss-making due to the impact of COVID-19. Companies with a turnover of up to $5 billion will be able to offset losses against previous profits on which tax has been paid to generate a refund. Losses incurred to June 2022 can be offset against prior profits made in or after the 2018‑19 financial year.
Measures in this Budget, together with what has been announced since the start of the COVID-19 crisis will see $14 billion in new and accelerated infrastructure projects to support a further 40,000 jobs.
The infrastructure investment will fund major projects across each state.
JobMaker Hiring Credit
JobMaker Hiring Credit has been introduced from 7th October 2020. Eligible employers can receive the payment for up to 12 months for new jobs created for those on Job Seeker aged between 16-35 years. It will be paid at the rate of $200 per week for those aged under 30, and $100 per week for those aged 30 to 35 years old. The new hires must work for at least 20 hours a week.
This will help to accelerate growth in the employment of young people during the COVID-19 recovery. JobMaker is an incentive to businesses to take on additional young job seekers.