2020 BUDGET OUTLINES
As per our Federal Treasurer Josh Frydenberg statement Covid debt to reach $213.7 billion this year and $66.9 billion by 2023/2024, putting Australian net debt in 44% of the GDP, however in comparison Australia net debt is only 1/2 of UK and 1/3 of US and 1/4 in Japan, putting Australia in much better position by comparison.
By comparison Australian contracted 7% June Quarter whereas 14% in France , 12% New Zealand and 20% United Kington.
FROM THE 2020 BUDGET WHAT ARE THE MOST IMPORTANT INITIATIVES THAT CAN AFFECT YOUR CAFE, PUB OR RESTAURANT YOU MUST CHECK IF YOUR ACCOUNTANT.
From last night, over 99% of business can write off full value of any eligible asset they purchase for their business as long as turn over under $5billion dollars until June 2022, unlocking further investment and dramatically expanding the nation production helping Australians to be back to work.
HERE ARE THE KEY INCENTIVES WE BELIVE WILL HAVE VERY POSITIVE IMPACT ON THE ECONOMY’s RECOVERY.
- Job Maker Program – available for up to 12 months for each new job and is avaialbe from tomorrow to employers who hire eligible employees ageing from 16-35. Employees will have to work for 20 hours.
|Employing a 16 years old under JobMaker program at $10.41 per hour ($208.20)||Can save your business $96.06%|
|Employing a 18 years old under JobMaker program at $10.41 per hour ($208.20)||Can save your business $68.59%|
|Employing a 21 years old under JobMaker program at $10.41 per hour ($208.20)||Can save your business $48.03%|
- Apprentice Wage Subsidy – The Government will introduce a new 50 per cent wage subsidy for all businesses that take on new apprentices over the period 5 October 2020 to 30 September 2021. The Hiring Credit shall be paid quarterly in arrears at the rate of $200 per week for those aged between 16-29, and $100 per week for those aged between 30-35. Eligible employees are required to work a minimum of 20 hours per week.
- Tax Concessions– The Government is expanding access to a range of small business tax concessions for small to medium businesses by lifting the aggregated annual turnover threshold from $10 million to $50 million, providing tax relief and reducing red tape for businesses.
- Temporary loss carry backs -Losses incurred in 2019–20, 2020–21 and/or 2021–22 can be carried back against profits made in or after 2018–19. Eligible companies may elect to receive a tax refund when they lodge their 2020–21 and 2021–22 tax returns and Losses incurred to June 2022 can be offset against prior profits made in or after the 2018-19 financial year.
- Temporary Full Expensing – From 6 October 2020 until 30 June 2022, businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are first used or installed ready for use. The cost of improvements made during this period to existing eligible depreciable assets can also be fully deducted and Eligible businesses that acquire eligible new or second-hand assets under the enhanced $150,000 instant asset write-off by 31 December 2020 will also have an extra six months, until 30 June 2021, to first use or install those assets. This temporary tax incentive will considerably support new investments and deliver significant cash flow benefits to businesses. Eligible businesses will also be able to acquire eligible new or second-hand assets under the enhanced $150,000 instant asset write-off by 31 December 2020 will also have an extra six months, until 30 June 2021, to first use or install those assets.
OTHER INVESTMENTS INCLUDE BUT IS NOT LIMITED TO:
- Plan to ensure Australian $1.3B investment modern manufacturing plan, $2bil additional in research and development incentive rewarding business that invest most on it.
- $1B for university research.
- $1.9B new fund to support lower emissions and renewable Technologies helping to lower emissions and address climate change, hence expecting to generate more jobs.
- Unlock 5 key gas basis ensuring gas at lower price and supporting more jobs in Australian manufacture sector.
- Expand the 10 years plan on infrastructure pipeline to create and increase jobs to boost productivity by infrastructure upgrade all across the nation.
- $2B upgrade in roads safety to create more jobs
- $2B in concessional loans package of measure in regional areas to support regional tourism.
- $3.7M in incentive to Australian exporters.