2020-2021 Federal Budget Highlights The Federal Budget is normally announced by the Treasurer in May each year.  This year the Budget was delayed and introduced on the 6th October. In the Government’s own words- “Australians have experienced a year like no other”. This blog is a summary of the Budget highlights, it is not intended to cover everything in the Budget. Income tax rates – Key changes include: raising the 19% bracket from $37,000 to $45,000, and raising the 32.5% bracket from $90,000 to $120,000. The proposed income tax brackets from 1.7.2020 are as follows. Minimum Maximum Tax on minimum Tax rate on excess — $18,200 — 0% $18,201 $45,000 — 19% $45,001 $120,000 $5,092 32.5% $120,001 $180,000 $29,466 37% $180,001 and above $51,666 45% The above rates will apply until 30.6.2024. BUSINESS TAX INCENTIVES Temporary full expensing Business will be able to deduct the full cost of eligible capital assets acquired from 6.10.2020 and first used or installed by 30.6.2022. Full expensing in the year of first use will apply to new depreciable assets and the cost of improvements to existing eligible assets for businesses with aggregated annual turnover of less than $5 billion. Full expensing also applies to … Continue reading Federal Budget