Federal Budget Tax Bulletin

Federal Budget Tax Bulletin

Last night, the Government issued a clear pre-election budget focusing on two particular voting blocs. The two voting blocs are as stated below:

  1. Individuals earning up to $126,000 and
  2. SME’s with turnovers under $50 million.

The Tax Cut Plan was announced last year in a similar form; however, it differs, due to the Governments projected surplus for the near term.

The timing of these tax cuts will remain the same, with the projected real benefits not seen until 1stJuly 2022 and major cuts from 1st July 2024.

Aspect Accountants and Advisors have reviewed the 2020 budget and have collated the key issues that are apparent, in the PDF curated below.

CLICK HERE TO OPEN PDF

Key issues:

The Personal Income Tax Plan 2.0
A Further Delay for Division 7A Changes
Extension Of The Instant Asset Write-Off
Tackling The Black Economy
EMDG scheme – extra $60 million in funding
Skills Package – Incentive Payments for Apprenticeships
Budget Silent on Removal of CGT Main Residence Exemption for Foreign Residents
More Money for the ATO’s Tax Avoidance Taskforce
Increased LCT refunds for farmers and tourism operators
Super contributions work test exemption extended to age 66
Exempt current pension income calculation to be simplified for super funds