Federal Budget 2021-22

The Federal Budget 2021-22 was announced in May. Below are some of the items affecting small businesses. These announcements will need to be passed by both houses so changes may still occur.

Further information can be found here

https://budget.gov.au/2021-22/content/overview.htm

or contact your accountant.

Superannuation Guarantee

The Government is proposing to remove the $450 monthly minimum income threshold for Superannuation Guarantee. The start date for this expected to be 1st July 2022.

The Superannuation Guarantee rate is increasing from 9.5% to 10% starting 1st July 2021. This is already legislated. Most bookkeeping softwares will update automatically, though all businesses should still check the calculation on the first pay run in July 2021.

Immediate Asset Write Off

The immediate asset write off is proposed to be extended for another year. Most businesses will be able to immediately tax deduct certain assets until 30th June 2023. The car limit still applies though.

Tax Loss Carry Back

The tax loss carry back is proposed to be extended until 30th June 2023. Company losses made during these years can be carried back to the year ended 30th June 2019 or later years, and company tax on those losses will be refunded. This only applies to companies.

Low and Middle Income Tax Offset

Low and Middle Income Tax Offset is proposed to be extended for another year. Individuals with taxable income up to $126,000 will receive an offset.