Australia’s first recession budget since the early 1990s was delivered last week. This will be the blueprint for successive federal budgets. This will focus on repairing the economic destruction caused by COVID-19.
The government has not held back, with major spending initiatives targeting taxpayers, job creation, infrastructure, manufacturing, and regional recovery.
For lower and middle-income earners there was an established law for income tax cuts. The government will also retain the Low and Middle Income Tax Offset for an additional year providing further relief.
There is an extension of the instant asset write-off to businesses with a turnover of up to $5 billion until June 2022 along with the introduction of a tax loss carryback, which will provide much-needed cash to previously profitable businesses that are now making losses due to COVID-19.
The Digital Business Plan measures support digital transformation. But ultimately is a missed opportunity to directly help Australian businesses. They will take up technology to enhance innovation and job growth.
The creation of superannuation accounts will not happen every time when a worker starts a new job. When you change jobs, Your superannuation account will ‘follow you’ preventing the creation of multiple super accounts.
For further information on how the 2020 Federal Budget affects you, feel free to get in contact with our Accountants at R T Accounting & Taxation Services.