The Australian Federal Government has announced a budget that’s been designed to stimulate business and spending in unprecedented times.
If you’re considering hiring new staff, now is the time.
From 7 October 2020 to 6 October 2021, the JobMaker Hiring Credit is available to businesses that hire young employees who have been on JobSeeker, Youth Allowance or the Parenting Payment for at least one of the three months prior.
- For every employee you hire aged between 16 and 29, your business will be able to claim $200 each week.
- For every employee you hire aged between 30 and 35, your business will be able to claim $100 each week.
- To qualify, your business will need to employ the person for an average of at least 20 hours a week over the reporting period (7 October 2020 to 6 October 2021).
The only businesses explicitly excluded from this scheme are major banks.
The Government will offer “temporary full expensing” to over 99% of Australian businesses to encourage them to invest.
If your business has a turnover up to $5 billion, from 7.30pm (AEDT) on 6 October 2020 until 30 June 2022, you can:
- Deduct the full cost of eligible depreciable assets of any value in the year they are installed,
- Fully deduct the cost of improvements to existing eligible depreciable assets during this period,
- Offset losses against previous profits on which tax has been paid, to generate a refund, and
- Carry back losses incurred up to 2021‑22 against profits made in or after 2018‑19 – you can elect to receive a tax refund when you lodge your business 2020‑21 and 2021‑22 tax returns.
To encourage your business to retrain and redeploy your workers to new roles, the Government is exempting employer-provided retraining activities from fringe benefits tax.
Cutting Red Tape
Additionally, the Government is making it easier for businesses to “invest, create jobs, respond quickly to challenges and seize opportunities” by:
- Streamlining and digitising a wide range of regulatory processes,
- Reducing regulation that imposes unnecessary costs and hinders business activity, and
- Supporting small business through the recovery.
Ayers Group Can Help
Navigating changes implemented by the Government can be a full-time job. The Ayers Group can reduce the burden of running your day to day business with tailored payroll solutions, by managing your contractors and more. We can also connect you with accounting and financial experts who can help you grow your own wealth. Contact the Ayers Group today.
Ayers Can Help You Find a Solution.
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