15 Oct 2020 Treasury
The Federal Government’s tax relief package has passed through Federal Parliament.
In response, the Australian Taxation Office and payroll software companies will make appropriate updates.
It’s estimated the tax relief package will create around 100,000 jobs by the end of 2021‑22 and boost GDP by around $6 billion in 2020‑21 and $19 billion in 2021‑22.
For individuals, the package brings forward Stage 2 of the Government’s Personal Income Tax Plan by two years. From 1 July 2020:
- The low income tax offset increases from $445 to $700.
- The top threshold of the 19 per cent tax bracket increases from $37,000 to $45,000.
- The top threshold of the 32.5 per cent tax bracket increases from $90,000 to $120,000.
In addition, in 2020‑21, low and middle income earners will receive a one-off additional benefit of up to $1,080 from the low and middle income tax offset.
For businesses, the following changes will take place:
- Businesses with a turnover of less than $5 billion are now able to immediately deduct the full cost of eligible depreciable assets as long as they are first used or installed by 30 June 2022.
- Companies with a turnover of less than $5 billion are allowed to temporarily offset tax losses against previous profits on which tax has been paid.
- Businesses with an aggregated annual turnover between $10 million and less than $50 million will be able to access up to ten small business tax concessions.
Read more here.