Member for Barker Tony Pasin has welcomed significant tax relief announced in the 2020 Federal Budget, which will be delivered in the 2020-21 financial year as part of the Government’s Economic Recovery Plan to create jobs, rebuild the economy and secure Australia’s future.
Measures include bringing forward Stage Two of the Personal Income Tax Plan by two years and supporting businesses with time-limited tax incentives to provide immediate expensing and loss carry-back.
Mr Pasin said these actions would generate economic activity and create jobs by lowering the cost of investment.
“These measures are estimated to create around 100,000 jobs Nation-wide by the end of 2021-22 and boost GDP by approximately $6 billion in 2020 21 and $19 billion in 2021-22,” he said.
Part of these measures include low and middle income tax payers receiving tax relief of up to $2,745 for singles and $5,490 for dual income families.
“Across the Nation, more than 7 million individuals are expected to receive tax relief of at least $2,000 for this financial year compared to 2017-18,” Mr Pasin said.
“This means more money in pockets and as people spend their tax cuts in the community, it will provide a vital boost to the local economy and encourage businesses to keep trading and creating more local jobs.”
Additionally, the private sector will be given a kick-start through an expansion of the previous instant asset write-off program, with 99 per cent of businesses able to write-off the full value of assets they purchase.
To complement this the Government will also allow companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid.
“Normally, businesses would have to return to profit before they can use their losses, however, these are not normal times,” Mr Pasin said.
“Losses incurred to June 2022 can be offset against prior profits made in or after the 2018-19 financial year.
“In order to keep our workers, our businesses need help now and that is what we will deliver through this Budget.”
Other measures include the low and middle income tax offset (LMITO), investing an additional $2 billion through the Research and Development Tax Incentive and small business tax concessions for businesses with an aggregated annual turnover between $10 million and $50 million.
Visit https://budget.gov.au/2020-21/ for more information.