Federal Budget 2020 - At A Glance

In this article we have summarised the high level points to take from the 2020 Federal Budget. 


TAXES

  • More than 11 million Australians will receive tax cuts, with a permanent cut of $47 a week for high-income earners.

  • Middle-income earners will also receive a one-off $21 with extension of the low and middle-income tax offset into 2020-21.

  • From 2020-21, the upper limit of the 19% personal income tax bracket will rise to $45,000 and the 32.5% marginal tax rate upper threshold will lift from $90,000 to $120,000.

WELFARE

  • The government has announced two additional economic support payments of $250 to pensioners and other eligible recipients, worth $2.6bn.

  • There will be an extension of the Job Keeper payment support for a further six months until 28 March 2021.

  • Extension of the COVID-19 supplement until 31 December 2020 at a rate of $250 per fortnight from 25 September 2020.

JOBS

  • The Morrison government will pay businesses up to $200 per week to hire young Australians as part of a $4bn budget measure that aims to reverse an increase in youth unemployment during the recession.

  • The new incentive will target firms that employ young workers who had previously been receiving jobseeker.

  • The government is also pledging to cover half the wages of 100,000 new apprenticeships and traineeships.

SMALL BUSINESS

  • Businesses with a turnover of less than $5bn will be able to deduct the full cost of capital assets purchased from today and first used or installed by 30 June 2022.

  • Small and medium businesses will also be able to apply “full expensing” to second-hand assets; businesses earning $50m to $500m will be able to do so for assets of less than $150,000.

HOUSING

  • An additional 10,000 places in first home loan deposit scheme in 2020-21 to support the purchase of a new home or a newly built home.

SUPER

  • Australians will automatically keep their superannuation fund when they change employers, stopping the creation of unintended multiple accounts in an attempt to save on unnecessary fees.

  • A new online YourSuper comparison tool will help people compare the performance of funds which will be required to meet an annual performance test, helping you make the best choice for your super.

HEALTH

  • 23,000 new packages for older Australians waiting to receive at home care, at a cost of $1.6bn.

  • $750m in funding for Covid-19 testing and $171m for the extended operation of up to 150 dedicated respiratory clinics to manage and diagnose Covid-19 cases.

  • A targeted capital gains tax exemption for granny flat arrangements where there is a formal written agreement, applying to arrangements with older Australians or those with a disability.

General Advice Warning

The information in this presentation contains general advice only, that is, advice which does not take into account your needs, objectives or financial situation. You need to consider the appropriateness of that general advice in light of your personal circumstances before acting on the advice. You should obtain and consider the Product Disclosure Statement for any product discussed before making a decision to acquire that product. You should obtain financial advice that addresses your specific needs and situation before making investment decisions. While every care has been taken in the preparation of this information, Infocus Securities Australia Pty Ltd (Infocus) does not guarantee the accuracy or completeness of the information. Infocus does not guarantee any particular outcome or future performance. Infocus is a registered tax (financial) adviser. Any tax advice in this presentation is incidental to the financial advice in it.  Taxation information is based on our interpretation of the relevant laws as at 1 July 2020. You should seek specialist advice from a tax professional to confirm the impact of this advice on your overall tax position. Any case studies included are hypothetical, for illustration purposes only and are not based on actual returns.

Infocus Securities Australia Pty Ltd (ABN 47 097 797 049) AFSL No. 236 523.

Featured Posts
Posts Are Coming Soon
Stay tuned...
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

Visit

Building 22 328 Reserve Road Cheltenham, VIC 3192

 

 

Call

T: (03) 9585 1977

Social

  • Facebook - White Circle
  • LinkedIn - White Circle

Contact

mkerr@baysiderp.com.au

P.O Box 570

Mentone, VIC 3194

"This information is of a general nature only and neither represents nor is intended to be specific advice on any particular matter. We strongly suggest that no person should act specifically on the basis of the information contained herein but should seek appropriate professional advice based upon their own person circunstances. Although we consider the sources for this material relaiable, no warranty is given and no liability is accepted for any statement or opinion or for any error or omisson. Past performance is not a reliable indicator of future performance. Please refer to the Product Disclosure Statement (PDS) before investing in an products mentioned in this communication. This information is current as at the date of publish"

"Nepean Group Pty Ltd trading as Bayside Retirement Planning ABN 22 119 081 140 is a Corporate Authorised Representative of Infocus Securities Australia Pty Ltd ABN 47 097 797 049 AFSL and Australian Credit Licence No, 236523"