Temporary Full Expensing of Asset Purchases
All businesses can claim a full deduction for the cost of any NEW assets purchased prior to 30 June 2023. For businesses with aggregated turnover of less than $50 million this also applies to second-hand assets. The deduction is available for the year the asset is installed / ready for use. This also extends to the full write off of small business entity pooled assets. With 30 June 2021 fast approaching please be mindful that if you want the deduction in the current financial year – you must have the asset available and ready for use by 30 June 2021.
This initiative allows companies with aggregated turnover of less than $5 billion to carry back losses incurred up to 30 June 2023 to offset against prior taxable years (as far back as the year ended 30 June 2019). There are rules to limit the tax offset, but essentially a company in a loss position can carry this back to generate a cash refund of tax paid in prior profitable years.
Apprentice Wage Subsidies
Expanding the current apprentice wage subsidy scheme by offering for more subsidised positions, extending the duration of the subsidy to 12 months and also making it available for apprentices employed before 31 March 2022.
Further Company Tax Rate Reduction
The scheduled company tax rate reductions will proceed. For eligible companies, the company tax rate that will apply for the current financial year is 26% and this will reduce to 25% from 1 July 2021. Eligible companies are those with aggregated turnover of less than $50 million.
SME Recovery Loan Scheme
Government guaranteed loans will be made available for businesses with turnover less than $250 million that were either receiving JobKeeper during the March 2021 quarter or were affected by the March 2021 NSW floods. Through participating lenders, the government will guarantee 80% of loans up to $5 million. These loans will be available up to 31 December 2021. Businesses that received loans under the previous phases of the government guarantee scheme may still apply for additional funds under this provision.
Student Visa Working Hours Extended in Key Sectors
On a temporary basis, employees holding student visas will be able to work more than 40 hours per fortnight in key sectors including tourism, hospitality and agricultural.
Changes to Superannuation Guarantee Obligations
Removal of $450 Wage Threshold for Employer Superannuation Guarantee Obligations. From 1 July 2022 employers will need to make superannuation guarantee payments for an eligible employee regardless of the wage amount.
From 1 July 2021 employers will be required to increase superannuation guarantee amounts from 9.5% to 10%.
Changes to Superannuation Contribution Work Test
From 1 July 2022, there will be no work test for an individual aged 67 to 74 years of age, for non-concessional and salary sacrifice superannuation contributions. However, the work test will still apply for those aged 67 to 74 in relation to concessional (deductible) superannuation contributions.
Extending Contribution Bring Forward Rule to Age 74
The contribution bring forward rule, allowing you to make non-concessional contributions of up to three times the annual limit in one year will be available to anyone up to age 74 (no work test required).
Expanded Access to Downsizer Superannuation Contributions
The eligibility age for downsizer superannuation contribution concession will be reduced to 60 from 1 July 2022.
New Home Guarantee
Additional funding will become available under this scheme, which allows first home buyers to build a new home or purchase a newly built home with only a 5% deposit, with the government guaranteeing up to 15% of the loan.
Family Home Guarantee for Single Parents
From 1 July 2021, subject to conditions, eligible single parents will be able to build or purchase a home with a deposit of as little as 2%. The government will make available 10,000 loan guarantees of up to 18% of the loan value.
First Home Super Saver Scheme (FHSSS)
Provided the conditions are satisfied, the amount a first home buyer can withdraw from super under this scheme will increase from $30,000 to $50,000 from 1 July 2022.
From July 2022 the childcare subsidy will increase to a maximum of 95% for second and subsequent children in care.
Also from July 2022, the current per child subsidy cap of $10,560 for families earning over $189,390 will be removed.
The Low and Middle Income Tax Offset
The Low and Middle Income Tax Offset available for eligible individuals will be extended from 30 June 2021 until 30 June 2022. This tax offset is triggered by the lodgement of your tax return and increases your refund, or reduces any tax payable, by up to $1080.
Elimination of $250 Reduction in Work Related Self-Education Expense Claims
Those claiming deductions for work related study expenses will be pleased to hear they will no longer need to reduce their claim by the arbitrary $250. This will apply from the time the legislation receives royal assent.
Find more info at Budget.gov.au | 2021-22 Budget