Federal Budget 2020: Taxation

Personal taxation rates will be dramatically reduced for the majority of Australian taxpayers, with a maximum 30% marginal tax rate up to $120,000.

Business will be encouraged to spend by allowing the full deduction of the cost of eligible capital assets. In normal circumstances the cost of capital assets can only be claimed over time, so it is an immediate benefit.

A great initiative for some of the quality businesses that have been decimated by Covid (travel agents, tourism operators, entertainment venues and restaurants as examples), is the ability to offset current year losses against previously taxed profits from 2019 and 2020 financial years. This may result in substantial tax refunds to businesses that will hopefully be able to recover.

 

Read a summary of taxation changes by clicking here.