Federal Budget 2020
Last night the Federal Government handed down its Budget for the 2020–21 financial year. After going into a record deficit of $213.7 billion to support individuals and businesses during the Coronavirus crisis, the focus of this year’s Budget is to regrow the economy by creating job opportunities and encouraging spending.
Key Budget initiatives include:
- Personal income tax cuts from 1 July 2020;
- A $4 billion ‘JobMaker’ Hiring Credit to encourage businesses to take on additional employees aged 16 to 35 years old;
- $110 billion in infrastructure investment over 10 years;
- Immediate deductions for business investment in capital assets
- Changes to how companies can manage losses; and
Access to generous tax concessions for a wider range of businesses.
Finally, it’s important to remember that the Budget announcements are still only proposals at this stage. Each of the proposals must be passed by Parliament before they’re legislated.