2020 Federal Budget
What does the budget mean for bookkeepers and your clients?
We have highlighted two key benefits that will have an immediate impact for bookkeepers and business owners.
- Instant Asset write off
- Losses carried back
2020 Federal Budget - Instant Asset Write Off
From 7:30pm (AEDT) on 6 October 2020 until 30 June 2022, businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted.
Losses carried back
Companies with turnover up to $5 billion can offset losses against previous profits on which tax has been paid, to generate a refund. Losses incurred up to 2021‑22 can be carried back against profits made in or after 2018‑19. Eligible companies may elect to receive a tax refund when they lodge their 2020‑21 and 2021‑22 tax returns.
The aim of these tax concessions and incentives is to increase business cash flow and support new investment, however there are yet to be passed into legislation.