Announcements from the 2021-22 Federal Government Budget, handed down on May 11, focus on recovery and investment to support jobs creation to drive economic growth.
Our Budget Summary highlights the top announcements which, if implemented, may affect your business decision making and planning for your personal financial goals.
FOR BUSINESS
Temporary Loss Carry Back Extension: Companies can carry-back tax losses from 2019-20, 2020-21, 2021-22 and 2022-23 tax periods to offset previously taxed profits from 2018-19 or later income years.
Temporary Full Expensing of Depreciating Assets Extended: The Government has announced that it will extend the temporary full expensing of depreciating assets measure for 12 months until 30 June 2023. This means that businesses with aggregated annual turnover or total income of up to $5 billion will be able to deduct the full cost of eligible depreciating assets acquired from 7.30pm AEDT on 6 October 2020 and first used or installed ready for use by 30 June 2023.
Extending the Apprenticeship Wage Subsidy Scheme: Businesses can continue to claim a wage subsidy for new apprentices and trainees, with employers reimbursed up to 50% of a new apprentice or trainee’s wages (signed up by 31 March 2022).
Small business loan scheme extended: Enabling small businesses to access funding to finance and grow their businesses.
FOR INDIVIDUALS
Low and Middle Income Tax Offset: The low and middle income tax offset will be extended for 2021-22 year with the offset amount up to $1,080 for singles or $2,160 for couples.
Superannuation Opportunities and Increased Flexibility:
- Removing minimum income thresholds so those earning less than $450 a month are eligible for Superannuation Guarantee payments.
- Australians aged 67 – 74 years of age will no longer have to meet a work test to make voluntary contributions to super and will be able to access the non-concessional bring-forward arrangements.
- Australians over 60 will be able to contribute up to $300,000 into super if they downsize their home.
- First home buyers can release up to $50,000 from super (up from $30,000) as part of the First Home Super Saver Scheme.
FOR MORE INFORMATION
If you would like to discuss the Budget and what it means for you, please contact us today on 03 9708 8801 or email info@rvpartners.com.au. For further information about the Federal Budget please click here.
General Advice Disclaimer: The information contained within this document is of a general nature only and neither represents nor is intended to be personal advice on any particular matter. Robinson Voss Partners (RV Partners) strongly suggests that no person should act specifically on the basis of the information in this document, but should obtain appropriate professional advice based on their own personal circumstances.
