By comparison to many, Australia has managed the COVID-19 pandemic well, but good management isn’t enough to protect us from the $213.7 billion deficit in 2020-21.
The Government has taken to heart the old adage, “You have to spend money to make money” to trade our way out of a black hole.
Our Key Takeaways
- The Goverment wants to see people back in Jobs, and is giving incentives (JobMaker) and cash in the form of tax refunds (like Loss Carryback) to allow businesses the budget to hire again
- Money needs to start circulating around the economy again, and the Immediate Expensing of Business assets purchased is a gamechanger for businesses
- Everyone loves Tax cuts
In more detail, initiatives include:
- Personal income tax cuts from 1 July 2020
- A $4 billion ‘JobMaker’ Hiring Credit to encourage businesses to take on additional employees aged 16 to 35 years old
- $110 billion in infrastructure investment over 10 years
- Immediate deductions for business investment in capital assets
- R & D Changes deferred to encourage investment in R & D
- Changes to how companies can manage losses
- Access to generous tax concessions for a wider range of businesses
We look forward to being able to share the finer details with you as legislation is enacted. Thanks to our professional partners KnowledgeShop.