Federal Budget 2020/21 – Assistance for small business
There’s new and extended support for NSW small businesses in the 2020-21 Federal Budget, including assistance for mental health, apprentices and trainees as well as asset write-offs.
Here is a quick summary of some of the highlights from the Federal Budget that may be of assistance to your small business:
- $26.7 billion in instant asset write-offs for business – uncapped. Small businesses will be able to write-off the full value of assets purchased until 2022.
- $15 billion in JobKeeper payments to help businesses and employees in the wake of COVID-19.
- $1.9 billion for loss carry back tax provision which means small businesses who have paid tax on profits in or after 2019, can claim back losses incurred from June 2020 to June 2022.
- $1.2 billion on an extension of wage subsidies for apprentices and trainees. There will be a new 50 per cent wage subsidy for all businesses who take on new apprentices between 5 October 2020 and 20 September 2021. The subsidy capped at $7,000 per quarter for gross wages of new apprentices and trainees.
- $850 million on the JobMaker Hiring Credit which payable to small businesses for up to 12 months when they hire young people (aged 16-35 years). To be eligible, employers need to demonstrate an increase in overall employee headcount and payroll for each additional new position created.
- $800 million national digitisation plan to help small businesses further utilise digital technology and help fund a national directory to be overseen by the ATO.
- $4.3 million for Beyond Blue’s NewAccess service, providing mental health support for small businesses. From early next year, small businesses will be able to access free one-on-one telehealth sessions with mental health coaches.
For businesses with an aggregated annual turnover between $10 and $50 million there will be access to up to ten tax concessions which will apply in three phases:
- From 1 July 2020, eligible businesses will be able to immediately deduct certain start-up expenses and certain prepaid expenditure;
- From 1 April 2021, eligible businesses will be exempt from the 47 per cent fringe benefits tax on car parking and multiple work-related portable electronic devices, such as phones or laptops, provided to employees; and
- From 1 July 2021, eligible businesses will be able to access the simplified trading stock rules, remit pay as you go (PAYG) instalments based on GDP adjusted notional tax and settle excise duty and excise-equivalent customs duty monthly on eligible goods. Eligible businesses will also have a two-year amendment period apply to income tax assessments for income years starting from 1 July 2021.
For more information on the 2020-21 Federal Budget go to the budget website.