Australia Budget 2020-2021

1. Australia Budget 2020-2021:- With the year that was behind us, this year's budget returned to somewhat normal; tons of fluff and bubbles, with announcements that, with some imagination, appear to be they're going to do something; an election budget. THE REAL IMPACT During the height of the pandemic last year, we saw gazillions of dollars thrown into the economy to support us through the "anticipated" worse of it. Much of those gazillions were directly funneled into our pockets. … That was last year. This year we've struggled to seek out an excessive amount of within the budget which will equate to real folding cash. Taxpayers As with the last budget, the marketing departments within treasury have once more used a comparison to 2017-18 as an indicator of your tax savings – check it out their calculator here. The marketing spin aside, the important and only tax savings for 2022 are going to be the "Low and Middle Tax Offset" (LMITO) which can remain in situ for an additional year. Other miscellaneous items Self-education – removing the exclusion of the primary $250 Childcare – increased subsidies Residency rules – simplifying for people Businesses The majority of the business support announced last night was at a government and sector level. There was little or no in it that we saw as having a true impact at the coalface. The notable exceptions were: Temporary full expensing (extended) – for brand spanking new depreciable assets, full cost; for existing, any improvements made after 6 October 2020 until 30 June 2023.

2. Temporary loss carry-back (extended) – companies with losses incurred in any years from 2019- 20 to (now) 2022-23 are often carried back against profits made in or after 2018-19. You’ll request a refund upon lodgment of 2020-21, 2021-22 or 2022-23 tax returns. Excise relief – increase in cap from $100,000 to $350,000 for little brewers and distillers. Other items of note Not-for-profits – a requirement to report back to ATO from 1 July 2023 Minimum SG threshold scrapped – superannuation guarantee payment required on every dollar, previously not required for workers earning but $450 a month. Employee share schemes – tax deferrals Tax incentives – industry-specific incentives – biotech and digital games industry. Increasing training places & supported apprenticeships ATO debt recovery – ATO debt recovery action can now be paused by the AAT. Superannuation What would a budget be without changing to superannuation? Work test – repelled pension loan scheme – improving access and attractiveness of the voluntary, reverse mortgage scheme. downsizer contribution extension – one-off post-tax contribution of up to $300,000 from age 60. THE INDIRECT (NOT-REAL) IMPACT In the short term, for most, we see little or no direct impact from the below measures. With some imagination, we will see how these may have longer-term benefits, but with the year that was, it is a long view. For completion purposes, I even have pulled details directly from the treasury marketing department, a number of which are measures announced (and passed) in previous budgets. Creating jobs and rebuilding our economy Tax cuts for taxpayers – including as above and in previous budgets Tax cuts for little to medium businesses – in previous budgets (from 30% to 25% for companies from 1 July 2021) Extending tax incentives – full expensing and temporary loss carry-back Global business and talent – little detail provided here, somewhat a moot point with border restrictions Tax incentives - industry-specific incentives – biotech and digital games industry Extending homebuilder (construction) and new home guarantee Building skills – additional training paces and apprenticeships

3. Care workforce – training and expansion Guaranteeing the essential services This area of the budgeted focused on essential services including aged care, psychological state , disability care and preschools; much of it on the rear of royal commissions and past criticisms. This was an enormous focus of this year's budget but a lengthy read. Improving women's safety and economic security This area of the budget focused on addressing questions of safety and strengthening economic security for ladies. Building a safer and resilient Australia This area of the budget was tons of "blue-skying” that specialize in national measures including energy, infrastructure, exports, manufacturing, and security. Certainly worth a read if you're employed with the govt or within these sectors but little or no in here at a private or small business level. Support Australians through COVID-19 This area of the budget was for the foremost part a self-promotion section, talking more about what has been done (the past) instead of what is going to be done (the future). The main items of note here were those mentioned above, including LMITO and therefore the extension of the complete expensing and loss carry-back measures. Support packages for the tourism, aviation, creative, and entertainment sectors were announced, but much of those are indirect, at a sector instead of a business level.