How the 2020 Federal Budget affects your business (Part 1)

Federal Budget

The 2020 Federal Budget contained a number of measures to try and kickstart the Australian economy which has gone into its first recession for nearly 30 years. Those measures include:

• tax cuts for any employees you have.

• the JobMaker Plan to boost employment.

• the Boosting Apprenticeships Wage Subsidy.

• an enhancement to the instant asset write-off scheme.

• an enhancement to write-off provisions for business losses.

• tax concessions for small to medium-sized businesses.

We’ll look at the tax cuts in this article, and each of the other measures in forthcoming articles.

Tax cuts for any employees you have

The Federal Budget has brought forward tax cuts that were originally scheduled for 1 July 2022. These tax cuts will now be backdated to 1 July this year and the new marginal tax rates are shown in the table below.

Income bracket New marginal tax rate backdated from July 1 2021

$0 - $18,200 Nil

$18,201 - $45,000 19% for the amount over $18,200

$45,001 - $120,000 $5,092 plus 32.5% for the amount over $45,000

$120,001 - $180,000 $29,467 plus 37% for the amount over $120,000

Over $180,000 $51,667 plus 45% for the amount over $180,000

How we can help

At Scorpion Bookkeeping, we can help you to implement Xero bookkeeping software to help you pay your staff the correct amounts under the new marginal tax rates. We are a Xero-certified partner.

In addition to helping you pay your staff, Xero software can also help you to quickly and easily do a range of other important business tasks like:

• invoicing,

• managing your debtors,

• accounts payable,

• stock management,

• preparing your BAS statements,

• and much more.

Scorpion Bookkeeping also provides bookkeeping support services to a diverse range of clients in South Australia, Victoria and New South Wales.

Contact us today for a free, no-obligation consultation to find out how we can help your business!