Bizally's small business budget update

Bizally's small business budget update

May 2021

Tuesday night’s Federal Budget included several measures that will assist small businesses and their owners. Below are the key highlights:

Business tax measures

• Extension of the instant asset write off for all business equipment purchased before 30 June 2023 (for eligible businesses)  

• Extension of the loss ‘carry back’ provisions to 30 June 2023. This will allow companies in certain circumstances to receive refunds of company tax paid from prior years, if they make a loss in subsequent years

• Extension of the low Income, and low- and middle-Income tax offsets for an additional year (until 30 June 2022). This is worth up to $1,080 a year for those earning less than $90,000

Superannuation measures

• Abolishment of the $450 per month minimum income threshold on superannuation contributions by employers. This means from 1 July 2022, superannuation guarantee contributions must be paid by employers on wages, even if an employee earns less than $450 in a calendar month

• Downsizer contribution extended to individuals aged 60 and over. This means that in certain circumstances, you can contribute an additional $300,000 into superannuation, if you sell your principal place of residence

• The work test has been abolished for non-concessional contributions for individuals aged between 67 and 74, making it easier to contribute funds into superannuation. However, you will still need to pass the work test to make personal concessional contributions

If you have any questions on the above information and how it may effect you or your business, please contact our office on 03 9887 9144 so that we can assist you.