Tips and tricks from your local business and wealth advisors, Collins & Co of Footscray.
The Federal Government recently handed down the Budget for 2021. If you own or operate a business, here are 5 announcements you may need to know about.
- Temporary full expensing extended — the Government will extend the 2020-21 temporary full expensing measures for 12 months until 30 June 2023. This will allow eligible businesses with aggregated annual turnover or total income of less than $5 billion to deduct the full cost of eligible depreciable assets of any value, acquired from 7:30pm AEDT on 6 October 2020 and first used or installed ready for use by 30 June 2023.
- Loss carry-back extended — the loss years in respect of which an eligible company (aggregated annual turnover of up to $5 billion) can currently carry back a tax loss (2019-20, 2020-21 and 2021-22) will be extended to include the 2022-23 income year.
- ATO debt recovery — the Administrative Appeals Tribunal (AAT) will be given the power to pause or modify ATO debt recovery action in relation to disputed debts of small businesses. Small business entities (including individuals carrying on a business) with an aggregated turnover of less than $10 million per year will be eligible to use the option. The AAT will be required to “have regard to the integrity of the tax system” in deciding whether to pause or modify the ATO’s debt recovery actions.
- Budget provides a further $2.1 billion in targeted support for aviation, tourism, arts and international education providers.
- Super Guarantee $450 per month threshold – to be removed from 1 July 2022. As a result, employers will be required to make quarterly Super Guarantee contributions on behalf of such low- income employees earning less than $450 per month (unless another Super Guarantee exemption applies).
If you are a Business Owner, and would like to find out how these and other announcement could affect your business, please email Collins & Co at partner@collinsco.com.au
