Firstly, we know that when we mention “Federal Budget” in our blog title, we’re at risk of losing some readers (don’t do it). BUT you have to take into account that IM Business Solutions offer exceptional bookkeeping services and it would be criminal of us not to pass on our knowledge and tips to help out our fellow business owners.
We promise we’ll try not to make it a snooze fest so if you own a business, read on for our handy takeouts from the 2020-21 Federal Budget announcement and how is can benefit you and your business.
As part of the government’s economic recovery plan, businesses owners can receive financial support when taking on new employees aged between 16-35 years old. In an effort to get our amazing Australian’s back to work, here is what businesses could be entitled to…
For each eligible employee, employers will receive for a period up to 12 months:
$200 a week if they hire an eligible young person aged 16 to 29 years; or
$100 a week if they hire an eligible young person aged 30 to 35 years.
If you’re considering hiring, the time is now.
Loss carry-back scheme
This scheme will allow eligible businesses who previously paid income tax for a relevant financial year, and subsequently made taxable losses, to claim a refundable offset up to the amount of their previous income. Losses made in the relevant financial years can be carried back to income tax liabilities made within the previous years.
What does this essentially mean? More cash back in businesses pockets, sooner.
The scheme is estimated to benefit about 1 million Australian businesses, employing around 8.8 million workers. It aims to cushion the impact of COVID on businesses.
Fringe Benefit Tax exemption
Another great benefit rolled out in the budget last month was the removal of pricey barriers for training and upskilling staff. As of 2 October, there has been an FBT exemption for employer-provided retraining and reskilling, for employees who are redeployed to a different role in the business. This seeks to rebuild the Aussie economy by providing the opportunity to reskill or retrain on much needed jobs.
As mentioned above, these are the top takeouts for IM Business Solutions, as we think they’re the most relative and beneficial to small businesses. As with anything, we’d urge you to do your research to ensure you’re eligible for any, or all, of these incentives from the recent budget announcement.
If you made it this far – we applaud and appreciate you!
We are extremely passionate about helping businesses of all shapes and sizes. If you’re after advice or in need of a bookkeeper in Perth, we are your people.