FEDERAL BUDGET 2020-2021 KEY ANNOUNCEMENTS
The Government proposes to provide two $250 economic support payments to be made from early December 2020 and early March 2021 to eligible recipients.
The Government will implement a ‘Your Future, Your Super’ package to improve outcomes for super fund members, comprising of four key initiatives:
Your super follows you when you change jobs.
- By 1 July 2021, a new interactive online ‘YourSuper’ comparison tool will be available to help you decide which MySuper product best meets your requirements.
- By 1 July 2021, MySuper products will be subject to an annual performance test and if they are underperforming, they’ll be prohibited from receiving new members.
- A strengthening of obligations on super trustees to act in the “best financial interests” of members.
The Government will bring forward the legislated increase in the 19%- and 32.5%-income tax thresholds from 1 July 2022 to 1 July 2020.
The Government will provide an additional 23,000 home care packages over four years from 2020-21 across all package levels.
Immediate asset write-offs (“full expensing”)
- Available to businesses with annual aggregated turnover up to $5 billion
- Applies to eligible assets purchased from Budget night to 30 June 2022 and used (or installed ready for use) by 30 June 2022
- Previous COVID-19 measure to allow instant write-off for second-hand assets for businesses with annual aggregated turnover up to $50 million
- Previous COVID-19 measure for business with annual aggregated turnover between $50 million and $500 million allowing immediate asset write-off for assets worth up to $150,000 extended a further 6 months to 30 June 2021
CARRY BACK OF TAX LOSSES
- Applicable for companies with annual aggregated turnover of up to $5 billion
- Applies for tax losses arising in tax years ending 30 June 2020, 2021 and 2022
- Can be applied against taxable income for years ending 30 June 2019 and later
- Commences from lodgement of income tax return for this current tax year