We expected the Federal Budget 2020-21 to stimulate small businesses and the economy, to help small business recover from the impact of the coronavirus pandemic and boost business confidence.
Here is an overview of the Federal Budget 2020-21 announcements and what they mean for small businesses.
The biggest items in the budget for small business are expanding the instant asset write off, introducing loss carry back, expanding R&D tax incentives, JobMaker hiring credits & bringing forward personal income tax cuts.
Tax Concession for Victorian COVID-19 Business Grants
Limitless Instant asset write-off for SME's up to 30 June 2022
Loss carry back: reclaim tax paid on last years profits
R&D Tax Incentives $2B boost
$7M to provide free, one-on-one mental health support to SME's
50% wage subsidy for Apprentices & Trainees (100,000 places)
Boosting Female Founders Initiative to support up to 282 additional start-ups
Insolvency reforms to allow businesses to trade out of the economic crisis
Bringing forward personal income tax cuts by 2 years
Workers who earn more than $90,000 will take home up to $2,565 extra, while people earning more than $120,000 receiving the maximum benefit.