Blog Layout

November 2020

MLCo • Nov 14, 2020

Tax relief for individuals

The Government brought forward 'Stage two' of their Personal Income Tax Plan by two years, so that, from 1 July 2020:

  • the low income tax offset increased from $445 to $700;
  • the top threshold of the 19% tax bracket increased from $37,000 to $45,000; and
  • the top threshold of the 32.5% tax bracket increased from $90,000 to $120,000.

In addition, in 2020/21, low and middle-income earners will receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.

Tax relief for business

Businesses with a turnover of up to $5 billion are now able to immediately deduct the full cost of eligible depreciable assets as long as they are first used or installed by 30 June 2022.

To complement this, the Government will also temporarily allow companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid. Also, businesses with an aggregated annual turnover between $10 million and $50 million will, for the first time, be able to access up to ten small business tax concessions.

Under the changes passed by the Parliament, the Government will also enhance previously announced reforms to invest an additional $2 billion through the Research and Development Tax Incentive.

Further in this month's edition:

  • Employers need to apply recent tax cuts as soon as possible
  • Deferrals of interest due to COVID-19
  • Simplified home office expense deduction claims due to COVID-19
  • Companies holding meetings and signing documents electronically
  • COVID-19 and loss utilisation
  • Employees on JobKeeper can satisfy the 'work test'
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