Federal Budget 2020: What We Understand So Far

This budget is the first attempt of the Australian government to pull the nation out of its first recession in 30 years, and naturally, it shows a few major policy changes compared to the other budgets. This year’s budget has induced the growth of the economy via spending, focusing on hiring and investments. Every year, all Australian businesses are required to lodge a business tax return. There has been news about some significant deductions in taxes. Let us know more about the budget.

The new changes:

There has been a new subsidy called ‘Boosting Apprenticeship Commencements’ amounting to $1.2 billion in funding and is intended to create 100,000 new apprenticeships over the next four years. The target behind this approach is to boost the collection and economy of the failing skills, especially under pressure due to the economic slowdown caused by the ongoing COVID-19.

The government is starting a financial motivation for businesses to employ more staff and increase their workforce, named as JobMaker Hiring Credit. This payment will be disbursed for up to 12 months for each new profession and is available from the date of the announcement.
  • Job-providers who provide jobs to employees aged between 16 and 35 will be given a “hiring credit” every quarter; at the rate of $200 per week for people aged between 16 and 19, and $100 per week within the age bracket 30-35.
  • Employees will need to show an increase in the number of employees and labor force for each extra new position created to be eligible.  

From the announcement of the budgets until 30 June 2022, businesses with a turnover of under $5 billion will be able to completely erase the cost of eligible devaluing properties bought, which means the businesses will be awarded a tax deduction in the first year of buying these suitable depreciating assets.

However, for general assistance and expert guidance on these matters, Tax Return Perth will always be there to support.

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