The 2021/22 Budget delivered a winner for small and medium sized businesses.
Coming off the back of the Pandemic Budget in October last year, it is clear the focus of the Federal Government is still firmly on continuing Australia’s economic recovery and creating jobs.
In welcome news, many of the support measures announced during the height of COVID-19 to assist small and medium sized businesses cope have either been expanded or extended.
This included almost $105 million announced in tax relief for around 20,000 small to medium businesses to access ten small business tax concessions.
So, what was in the Budget for business? In case you missed it, here is your five minute guide to the 2021-22 Federal Budget.
The corporate tax rate for SME’s will drop to 25 per cent from 1 July 2021 from 27.5 per cent.
Extending temporary full expensing and temporary loss carry-back
The Government has announced an extension to temporary full expensing and temporary loss carry-back for an additional year.
This extension will enable businesses experiencing COVID‑19 related supply disruptions, or considering investing in projects requiring longer planning times, to take advantage of the incentives.
Broadening AAT powers
The Government has announced it is broadening the scope of the Administrative Appeals Tribunal to help small and medium sized businesses put a pause on any debt recovery action launched by the Australian Taxation Office until the dispute is resolved.
Temporary loss carry-back provision:
Businesses will now be permitted to carry back tax losses for an extra 12 months from the 2019-20, 2020-21, 2021-22 and now 2022-23 income years to offset previously taxed profits in 2018-19 or later income years.
If you have any questions regarding any measures announced in the Budget, please contact your financial professional for advice.
UBT is a diversified business consultancy that supports businesses with business-advisory and group-buying services with the objective to help businesses develop a competitive edge.
The UBT workforce is comprised of employees from both within the Plymouth Brethren Christian Church community as well as outside the community.