I am sure you know our federal government announced the changes in our budget this week.
Although these have not yet been established law, we have summarised the changes which relate to our client base. It is not an extensive summary, nor are the full details yet released.
But as always, here is our brief summary of the changes.
For businesses:
- Any business losses incurred to 30/6/2022 can be offset against previous years profits to have the tax paid on those profits refunded
- Write off of business assets as an immediate expense rather than depreciating these over time
- Job maker credits of $200 per week for new employees under 30 years old and $100 per week for new employees between 30 – 35 years old working more than 20 hours per week and previously receiving job seeker payments.
- Subsidy for new apprentice or trainees of 50% of their wages up to $7,000 per quarter until September 2021.
For taxpayers:
- Low income offset is increased from $445 to $700
- 19% tax bracket increased from $37,000 to $45,000
- 32.5% tax bracket increased from $90,000 to $120,000
This will result in refunds of PAYG withholding tax from 1st July to November and decreased PAYG withholding tax from wages from November. This adjustment may take place upon lodgement of your 2021 tax return and in your net pay from November.
As always, please contact us if we can assist you in any way or if you have queries relating to the above information.