New tax measures
Income tax relief: The government is expected to retrospect the “Phase 2” tax cuts originally scheduled to begin in July 2022 to July 1, 2020, and the “Phase 3” tax cuts that will begin in 2024 will also Implement in advance. This means that the threshold of the 32.5% tax rate has risen from A$90,000 to A$120,000; and in the third stage, everyone with an income between A$45,000 and A$200,000 will have a 37% tax rate. 30%. Income above A$200,000 will be taxed at a 45% tax rate. Low-income earners may also get tax cuts.
Investment allowance: The government has stated that it will include investment allowance in Tuesday’s budget. Large companies hope to have a 20% cancellation limit, and there is no limit to the size of companies that can apply for the discount.
Operating loss tax “carry-forward”: This allows small businesses to offset current operating losses with previously paid taxes to increase cash flow.
R&D tax benefits: The government originally planned to cut R&D tax benefits of A$1.8 billion, but it may now cancel the plan in whole or in part.
Tax cuts for small business startups: The new budget will spend 105 million yuan to provide 10 tax cuts for operators with a turnover of between 10 million and 50 million, including no employee benefit tax on car parking spaces, mobile phones or laptops ( FBT), simplified trading stock rules and simplified PAYG installment payment.
FBT tax benefits for employee training: Employees facing layoffs can be exempted from FBT if they receive retraining.
Income tax relief for retraining: The government will consult on changes to existing rules to allow people to apply for income tax relief for future vocational training expenses.
New spending measures
Apprenticeship subsidies: Employers will receive 1.2 billion Australian dollars in subsidies to pay 100,000 new apprentices for a year.
Expansion of the first home buyer plan: The first home buyer preferential plan for constructing or buying new houses with a 5% down payment will add another 10,000 places. The government will also increase the housing price ceiling for this concession from A$750,000 to A$950,000 to reflect the reality that the price of new houses is higher than that of second-hand houses.
Manufacturing subsidies: The government will allocate 1.5 billion Australian dollars to promote advanced manufacturing in six areas: resources and key minerals; food and beverages; medical products; recycling and clean energy; defense and space.
National infrastructure subsidies: States will receive billions of infrastructure subsidies to encourage them to spend money, and those who spend the fastest will receive the most subsidies.
Elderly care: The new budget will provide more home care package funds for the elderly and provide other options for the elderly besides entering a nursing home.
Women’s Rights: The 2020 Women’s Economic Security Statement aims to help Australian women achieve economic independence, narrow the wage gap between men and women, and encourage more women to join the workforce.
Economic Indicators
Debt: Total debt will be close to 1 trillion Australian dollars, and the deficit will exceed 200 billion Australian dollars.
Immigration: The new budget will confirm that the number of people leaving Australia in the next two years will exceed the number of people arriving in Australia, and the net immigration level will drop to negative for the first time since the end of World War II.
Unemployment rate: The peak unemployment rate is expected to be less than 10%.
https://www.afr.com/politics/federal/everything-we-know-about-the-budget-so-far-20201004-p561uk