News

Tax incentives for taxpayers:

1. Personal income tax rates reduced.
   The personal income tax rates that were to apply from 1st July 2022 are brought forward to 1st July 2020.

   These changes involve:

   1. Increasing the upper threshold of the 19% personal income tax bracket from $37,000 to $45,000, and
   2. Increasing the upper threshold of the 32.5% personal income tax bracket from $90,000 to $120,000.
       
2. The uncapped immediate write-off for depreciable assets.
   Businesses will be able to claim an immediate write off for the full cost of eligible depreciable assets where:
   1. The asset was acquired after 6th October 2020.
   2. The asset was first used or installed ready for use by 30th June 2022.
   3. The asset is a new asset or an improvement to an existing eligible asset. (For businesses with an annual turnover less than $50 million the asset can be second hand).
       
3. Temporary loss carryback for eligible companies.
   Companies can carry back losses from 2020, 2021 or 2022 income years to offset previously taxed profits made in or after the 2019 income year.

   This allows companies to generate a refundable tax offset in the year in which the loss is made. The tax refund is limited to the amount of earlier taxed profits. Also, the carryback cannot generate a franking account deficit.
    

4. JobMaker hiring credit.
   From 7th October 2020, eligible employers will be able to claim $200 per week for each additional eligible employee they hire aged between 16 to 29 years old (and $100 a week for employees aged 30 to 35 years old). New jobs created until 6th October 2021 will attract the credit for up to 12 months from the date the new position is created.

   The JobMaker Hiring Credit will be claimed quarterly in arrears by the employer from the ATO from 1st February 2021.