13 Oct THE FEDERAL BUDGET AND BUSINESS

It appears the Government is looking to the economic recovery being fuelled by the private sector, small to medium size business.

SUPPORTING BUSINESS AND INVESTMENT

To assist new investment and increase the cash flow for business,the government is providing a temporary tax incentive. This will be available to 99 per cent of businesses who in turn employ around 11.5 million workers.

From 7.30pm on the 6th October until 30th June 2022, businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed.

Also the cost of improvements to existing eligible assets made during this period can also be fully deducted.

LOWER TAXES FOR HARD WORKING EMPLOYEES

In last week’s budget the Government has proposed an additional $17.8 billion in personal income tax to support the economic recovery. It builds on the $8.1 billion in tax relief that will be delivered for the 2020-21 income year under already legislated Personal Income Tax Plan.

IMPROVING THE EASE OF DOING BUSINESS

The Government’s economic recovery plan also includes reducing the red tape currently currently endured by small business. That is why the Government is making it easier for business to invest, create jobs and respond quickly to the business opportunities that present.

IN THE BUDGET THE GOVERNMENT WILL :

• Reduce regulation that impose unnecessary costs and hinders business activity
• Support small business through the recovery
• Streamline and digitise a wide range of regulatory processes

JOBMAKER HIRING CREDIT

The Government’s new job maker hiring credit will help to accelerate growth in employment during the recovery by giving businesses financial incentives to take on additional employees that are job seekers aged 16 to 35 years old.

The latest budget is very geared to assisting private sector business with the lifting of the previous dollar limit on the investment allowance being a major change.