OCTOBER FEDERAL BUDGET – KEY CHANGES
1. Increased income tax thresholds have been introduced:
|Taxable Income||Individual Tax Rate||Backpacker Tax Rate|
|$0 – $18,200||0%||15%|
|$18,201 – $45,000||19%||15%|
|$45,001 – $120,000||32.5%||32.5%|
|$120,001 – $180,000||37%||37%|
|$180,001 and over||45%||45%|
2. Please remember to update your software to reflect these new tax rates.
3. Backpackers – The income tax rate is now a flat 15% on every dollar up to $45,000.
4. JobMaker – if you employ a person previously on JobSeeker, Youth Allowance or a Parenting Payment there is a subsidy of $200 per week for 16-29 year olds and $100 per week for 30-35 year olds available.
5. The plant & equipment instant write-off limit has been removed from the 6th of October 2020 and extended to the 30th of June 2022 effectively meaning that new and second hand plant items of any value are now 100% deductible to businesses with a turnover of $50 million or less. This excludes motor vehicles beyond the log book percentages and the amounts over the $57,581 limit, however includes certain industry specific property improvements. Speak to your accountant to clarify these.
6. Small business’s with a turnover of less than $10 million can instantly write-off their depreciation pool balance as at the 30/06/2021. This by default includes any items of plant added to the pool prior to budget night. This may cause excess tax deductions in this year and may reduce the need for income deferral at years end.
JOBKEEPER 2.0 EXTENSION
Enrolments for Round 2 closed on the 28th of October. We need to lodge October turnover figures by the 14th of November.
Please update your data ASAP to help us meet this next deadline.
DROUGHT RELIEF GRANT
There currently is a Drought Relief Grant funded by the Australian Federal Government for $3,000 per household. This grant has been allocated to St Vinnies and The Salvation Army to distribute to eligible households. If you are a farmer, farmhand or a contractor or supplier of Agricultural equipment, then you will be eligible for one grant per household. The link below will take you to the relevant page for application.
St Vincent De Paul The Salvation Army
Broomehill – Tambellup Busselton
Bruce Rock Carnamah
Donnybrook – Balingup Dandaragan
Katanning Lake Grace
Narembeen Three Springs
This is due on Wednesday the 25th of November, please get your BAS gear in if you haven’t already and also your signed copies before the due date.
CASH FLOW BOOST
The September BAS will be the final instalment of this initiative. The sooner you get the data to us the sooner we can access this final payment.
|14 November 2020||Report JobKeeper 2.0 October Turnover|
|21 November 2020||Lodge and pay October 2020 monthly PAYG Withholding|
|25 November 2020||Lodge and pay September 2020 quarterly BAS (if lodging electronically or through Tax Agent)|
|14 December 2020||Report JobKeeper 2.0 November Turnover|
|21 December 2020||Lodge and pay November 2020 monthly PAYG Withholding|
|14 January 2021||Report JobKeeper 2.0 December Turnover|
|28 January 2021||– Pay December 2020 quarterly Super Guarantee
– Enrolments for January – March JobKeeper Extension Close (Date TBC)
|28 February 2021||– Lodge and pay December 2020 quarterly BAS
– Lodge and pay December 2020 quarterly instalment notice
– Lodge and pay SMSF annual return for new SMSFs (unless otherwise advised)