Budget Summary

Matrix Norwest, Budget Summary 2020

Budget Summary

Last night (6 October 2020) the Treasurer, Mr Josh Frydenberg handed down the 2020-21 Federal Budget. The Budget focuses on jobs with the Treasurer stating job creation as “the first, second and third focus”. Previously announced tax cuts have been brought forward and $7.5 billion in infrastructure spending will be fast-tracked to ignite the economy.

The following is a snapshot of some of the announcements made.

Job Recovery

  • JobMaker Hiring Credit – from today employers will be able to claim $200 a week for each 16-29 year old, and $100 a week for each 30-35 year old that they employ in a new position (subject to eligibility criteria at both employer and employee level).
  • JobTrainer Fund – Re-training fund to be established to educate and upskill workers.
  • Apprentice Wage Subsidy Scheme – a subsidy for employers for up to half of the salary of new apprentices.

Tax Reform

Business measures include:

  • Instant Asset Write-off for businesses with an immediate deduction for any eligible purchase made until June 2022
  • Business Refundable tax losses enabling businesses to apply tax losses in the 2021 or 2022 financial year against prior year profits from 2019 onwards in the form of a tax refund
  • FBT exemptions for car-parking and retraining of staff

Individual measures include:

  • Tax relief backdated to 1 July 2020 with a shift in two income tax brackets and increased low income tax offsets. The personal tax cuts will result in an additional $1,080 in post tax income for individuals earning between $45,000 and $90,000 and an additional $2,565 for those earning more than $120,000
  • CGT exemption for grannyflats where accommodation is for older Australians or people with disabilities

Other Announcements

  • Welfare recipients – Two $250 cash payments coming in December 2020 and March 2021, for recipients of aged care, family, or disability benefits.
  • First Home Buyers – Extensions to first home owner grants including 10,000 more First Home Loan Deposit Scheme eligibilities and a further $1 billion in low cost finance
  • Aged Care – 23,000 additional home care packages to facilitate at-home care and treatment for members of Australia’s population.
  • Superannuation – Superannuation reform to ensure trustee accountability and transparency and a new YourSuper comparison tool.

For clarification on how the budget impacts you, your business or your family, please reach out to your Matrix Norwest advisors and tax specialists.