Federal Budget 2020
Wednesday 07 October 20
2020 Federal Budget
This has been a year like none other, and last night's Federal Budget has followed suit. There are signficant benefits for nearly everyone - here are the basics:
- Tax cuts - The tax rates which had been due to come into effect from 2022 have been brought forward to this current financial year. That means lower rates of tax for everyone earning over $37,000 pa. For someone earning $90,000 pa, that's a tax savings of $1,080.
- Larger low to middle income tax rebates for this current year - there is an increase of the Low Income Tax Offset plus the Low to Middle Tax Offset has been retained. That's an extra benefit of $262 for someone on an income of $37,500 and an additional $1,080 for one on $90,000 pa.
- A Capital Gains Tax exemption for establishing or changing a granny flat rights agreement, from next financial year. It must involve a formal agreement.
First Home Buyers
- 10,000 additional places for the First Home Loan Deposit Scheme. This allows an eligible first home buyer to make a purchase with a 5% deposit without having to pay lenders mortgage insurance, given that they qualify for a loan.
Small Businesses (& larger ones with some differences)
- Instant write-offs on asset purchases of any size, including used items
- Fringe Benefit Tax concessions
- Use recent losses to offset income from earlier years, and get tax paid back to you
- $100 to $200 pw JobMaker Hiring Credit
- $1.2 billion for 100,000 new apprentices and trainees
Health & Social Security
- $250 payments in December and March to pensioners & some other Centrelink benefit recipients who are not receiving job keeper benefits.
- 23,000 more in-home aged care packages.
- $3.9 billion boost to National Disability Insurance Scheme
- 10 additional Medicare funded mental health sessions
For further details on the budget, see a more detailed summary HERE.
If you want advice or assistance on what the Federal Budget means for you, please do not hesitate to give us a call. 02 4905 0250. Ask for Beth for assistance with a loan, or Jim for assistance with financial planning matters.
Please note that the items in the Federal Budget have not yet been legislated, so they are not yet in force or certain to take place. There are conditions to be met for eligibility for each of the benefits.