The 2020 Australian Budget at a glance what it means for you.

Thanks to the Covid -19 pandemic, we are experiencing the most severe global crisis since the Great Depression. On Tuesday, the Federal government handed down one of the most elaborate budgets to assist Australians to pull through these unprecedented times.

It covers reforms to taxes, jobs, welfare payments, education and support to small businesses, just to name a few.  I have provided a brief snapshot below for you, with more detail in the attached summary.

Tax breaks to millions of Australians include:

• a permanent cut of $47 a week for high-income earners.
• Middle-income earners will also receive a one-off $21 with extension of the low and middle-income tax offset into 2020-21.
• From 2020-21, the upper limit of the 19% personal income tax bracket will rise to $45,000 and the 32.5% marginal tax rate upper threshold will lift from $90,000 to $120,000.

Incentives to hire young workers:

• Businesses will be paid up to $200 per week to hire young Australians

Small Business will be able to:

• deduct the full cost of capital assets purchased after budget night and first used or installed by 30 June 2022.
• Apply “full expensing” to second-hand assets; businesses earning $50m to $500m will be able to do so for assets of less than $150,000.
• offset losses against previous profits on which tax has been paid, to generate a refund.
• Apply for Tax-free support grants

I suggest that you read through the attached information to discern what may be applicable to your individual circumstances. Obviously, each business and client will have different needs and eligibility criteria to consider.

The team at ZT partners are more than happy to discuss these with you and help decide how we can best help you through these challenging times.

Please don’t hesitate to pick up the phone and give us a call, book a Zoom meeting via the website or email us for further information.

Just a reminder that the Coburg office is permanently closed and all staff are working remotely, full steam ahead. Our new premises is not far from completion now and we are looking forward to escaping our home offices.