OMNIBusiness Federal Budget Summary

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To kickstart the economy after Australia’s massive COVID-19 close down, the Federal Government has released a huge spending and tax cuts Budget for 2020.

Here is our summary of the 2020 Federal Budget and what it means for you:

This appears to be a great Budget for the young, anyone still working and business owners. Self-funded retirees receive nothing directly – but if the share market improves due to this Budget stimulus then they should receive a nice gain over the next 12 months.
Massive Government spending, tax cuts and wages subsidies will lead to higher spending throughout the economy and greater business investment.
This pushes up confidence and job creation and more economic growth. This puts company revenue and profits on steroids – and share prices go up. As most self-funded retirees depend on the share market for growth of their income, this Budget indirectly helps them.

With this being the most important Budget since WW2 we have chosen a number of key announcements that will have the most impact on you and your business. Please do not hesitate to contact us if you have any questions about how this Federal Budget affects you.

Regards,

Justin Flavel
Managing Director

Income tax changes
The Government has announced that it will bring forward changes to the personal income tax rates that were due to apply from 1 July 2022, so that changes now apply from 1 July 2020. Read more »

Small business tax concessions
The Government has announced that it will expand the concessions available to Medium-Sized Entities to provide access to up to 10 Small Business Concessions. Read more »

JobMaker Hiring Credit
The JobMaker hiring credit will be available to eligible employers over 12 months from 7 October 2020 for each additional new job they create for an eligible employee. Read more »

Uncapped immediate write-off
This measure allows businesses with a turnover of less than $5 billion to claim a full up-front tax deduction for the cost of new business assets. There is no cost cap with this measure. Read more »

Temporary loss carry back

Companies with turnover of less than $5 billion will be allowed to carry back losses from 2020, 2021 or 2022 income years to offset previously taxed profits made in or after the 2019 income year. This will generate a refundable tax offset in the year in which the loss is made. Read more »

FBT recordkeeping relief
A number of FBT changes were announced, including removal of FBT on car parking and portable electronic devices from 1 April 2021, and on employee retraining and reskilling costs from 2 October 2020. Read more »

Omnis Group Pty Ltd
1 Alvan Street, Subiaco WA 6008
p. 08 9380 3555 f. 08 9380 9515
www.omnisgroup.com.au
ABN 13087542658

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Disclaimer This newsletter is for information purpose only and does not constitute advice and does not take into account any of your objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain and read the product disclosure statement. NEO Financial Solutions: AFSL 385845 ABN 64 141 607 098. Omnis Financial Planning Pty Ltd ATF OFP Unit Trust ABN 79331585748 is a Corporate Authorised Representative (ARN 1006949) of NEO Financial Solutions Pty Ltd AFSL 385845 ABN 64 141 607 098

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