2020-21 Federal Budget New Measures

• Personal income tax cuts: increase to low income tax offset and changes to income tax thresholds brought forward, low and middle income tax offset retained for 2020-21.
• Temporary loss carry back: corporate tax entities with an aggregated turnover of less than $5 billion to carry back a tax loss for the 2019-20, 2020-21 or 2021-22 income year and apply it against tax paid in a previous income year as far back as the 2018-19 income year.
• Expanded access to certain small business entity concessions: eligible entities with aggregated turnover from $10 million to $50 million to have access to some existing small business GST, excise, FBT and income tax concessions in phases from 1 July 2020.
• Research and development (R&D) tax incentive changes: expenditure threshold increase, changes to R&D tax offset rate and thresholds, and amendments to the R&D administrative framework.
• Temporary full expensing of depreciating assets: businesses with aggregated turnover less than $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed from 6 October 2020 to 30 June 2022.