Treasurer Josh Frydenberg handed down the 2020-21 Federal Budget on 6 October 2020, a deficit of $213.7b for the year, taking net debt to $703b or 36% of GDP.
The Government laid out their recovery plan focused on creating jobs, rebuilding the economy, and securing Australia’s future.
Substantial spending on infrastructure, credits for hiring and training employees and tax incentives encouraging business investment were at the forefront of the Budget.
The Government committed $10 billion to road and rail projects, road safety and community infrastructure projects across the nation.
Eligible businesses will be allowed unprecedented tax deductions on the purchase of capital assets from 6 October 2020 to 30 June 2022.
Eligible companies will be able to carry back their income tax losses to offset previously taxed profits in 2018-19 or later income years. Tax refunds will be available on lodgement of the relevant income tax return provided the carry back does not result in a franking account deficit.
The income threshold for small businesses has been increased to $50 million (from $10 million) for certain small business tax concessions. However, the turnover thresholds for small business Capital Gains Tax (CGT) concessions and small business restructure rollover relief will remain at less than $2 million and $10 million respectively.
For individuals, the previously legislated personal income tax rates cuts have been brought forward to 1 July 2020 and will deliver substantial tax relief to individuals across Australia.
The stimulus measures will continue with the announcement of cash incentives through the JobMaker Hiring Credit and extension of the JobTrainer Apprenticeships Wage Subsidies.
The key taxation, superannuation and social security measures are summarised within the following report.
View our Federal Budget Report here.