08 Oct 2020 Legislation
Introduced Wednesday, 7 October 2020 in the House of Representatives. The Bill proposes to implement the 2020-21 Federal Budget proposal, to bring the personal tax cuts (Stage 2) that were previously legislated to commence from 1 July 2022, forward to 1 July 2020, and also bring forward the increase in the amount of the low income tax offset to $700 (from $445) to 2020-21.
The Bill also proposes to implement a number of 2020-21 Budget announcements including:
- From July 2020, increase the top threshold of the 19% personal income tax bracket from $37,000 to $45,000;
- From July 2020, increase the top threshold of the 32.5% tax bracket from $90,000 to $120,000;
- Retain the low and middle income tax offset (maximum $1,080) for the 2020-21 income year;
- Allow corporate tax entities with an aggregated turnover of less than $5 billion to carry back tax losses from the 2019-20, 2020-21 or 2021-22 income years to offset previously taxed profits in 2018-19 or later income years;
- Allow businesses with an aggregated turnover of less than $5 billion to deduct the full cost of eligible depreciating assets that are first held, and first used or installed ready for use for a taxable purpose, between 6 October 2020 and 30 June 2022;
- Expand a range of tax concessions currently available to small businesses (aggregated annual turnover under $10 million) to be made available to medium sized businesses with an aggregated annual turnover of less than $50 million; and
- Reform the R&D Tax Incentive and improve the administrative framework supporting the R&D Incentive, including making information about R&D expenditure claims transparent, enhancing the guidance framework to provide certainty to applicants and streamlining administrative processes.
Introduced Wednesday, 7 October 2020 in the House of Representatives. It proposes to implement the 2020-21 Budget announcement to introduce a JobMaker Hiring Credit.
The Bill proposes to amend the Coronavirus Economic Response Package (Payments and Benefits) Act 2020, to:
- Allow the Treasurer to make rules for a kind of Coronavirus economic response payment that is intended to improve the prospects of individuals getting employment or increase workforce participation; and
- Provide for an additional kind of payment to be authorised by the Act to facilitate payments in relation to the JobMaker Hiring Credit scheme, announced by the Government in the 2020-21 Budget.
The Bill proposed the scheme to operate from 7 October 2020 until 6 October 2022.
There’s only a few days left to have your say on the proposed insolvency reforms to support small business.
The measures will commence on 1 January 2021, subject to the passing of legislation. This will ensure that more small businesses are able to benefit from the new processes, particularly as temporary relief to protect financially distressed businesses expires at the end of 2020.
To implement the reforms, changes to primary legislation will be made to amend the Corporations Act 2001.
Key aspects of the reforms will be progressed at a later date, through associated subordinate legislation (both regulations amending the Corporations Regulations 2001 and rules made under the Corporations Act 2001). This will include details governing the operation of the new simplified insolvency processes.
Public consultation on the exposure draft legislation and explanatory material will close on 12 October 2020.
Read more about how to submit your response here.