Personal income tax rates will be changed as follows:
Increasing upper threshold of 19% tax bracket to $45,000 (from $37,000)
Increasing upper threshold of 32.5% tax bracket to $120,000 (from $90,000)
This means it may be time to increase your personal salary.
JobMaker Hiring Credit
Make sure to read the fine print on this one! You can claim up to $200 a week for eligible employees under 30 years of age and up to $100 a week for eligible employees 30 to 35 years of age for 12 months IF:
they work at least 20 hours per week
they start working for you between 7 October 2020 and 6 October 2021 (ie.not currently employed with you)
they have received JobSeeker Payment, Youth Allowance or Parenting Payment for at least one month in the three months before they were hired
you need demonstrate it is an ADDITIONAL job you have created
you can’t be claiming JobKeepers
There are a few more rules but those are the important ones to start with before you get excited.
Immediate write off for depreciable assets
Any business asset you purchase after 7:30pm 6 October can be written off 100% in the year it is bought and installed for use until June 2022. This has no $ cap unlike previously. However don’t be fooled by the media saying your purchase is paid by the taxman! The asset is an expense so reduces your profit and you pay less tax in the year you buy it. For example if you buy an xray machine for $40,000 and your business is a company at 27.5% tax rate, then you pay $11,000 less tax.
