The Federal Government delivered its 2021/22 Budget on 11 May 2021. In our usual tradition, we’ve developed a “Highlights” summary of the Federal Budget specifically for business owners.
Highlights for Business Owners:
- The Temporary Full Expensing measures for businesses with under $5billion of aggregated annual turnover has been extended for a further 12 months until 30 June 2023.
- The Temporary Loss Carry-Back measures for businesses with under $5billion of aggregated annual turnover has been extended for a further 12 months until 30 June 2023.
- The Job Trainer Fund will be extended with the Federal Government providing an additional $506 million over 2 years from 2021/22.
- An SME Recovery Loan Scheme will be available to continue to support those SME’s that received JobKeeper or are eligible flood-affected businesses.
- The Boosting Apprenticeship Commencement wage subsidy will be expanded with the Federal Government providing an additional $2.7billion over 4 years from 2020/21.
- Digital Economy strategy. The Federal Government will allow taxpayers to self-assess the tax effective lives of eligible intangible depreciating assets such as patents, registered designs, copyrights and in-house software. This measure will apply from 1 July 2023 – after the Temporary Full Expensing measures have completed.
- The Federal Government will introduce a Patent Box tax regime for Australian medical and biotech innovations. Corporate income derived from Patents in eligible Australian medical and biotech companies will be taxed concessionally at a rate of 17%. The concession will apply from income years starting on or after 1 July 2022.
- On the Employee Superannuation front, the Federal Government will remove the current $450 per month minimum income threshold under which employees do not have to be paid the SG by their employer
If you require further information on 2021/22 Federal Budget measures, please call or email your regular DRB Group contact.
Thanks to the teams at CPA Australia and Macquarie Group for information provided.