|Apprenticeship wage subsidy scheme||Extended to 31 March 2021, is a 50% subsidy for apprentice wages||Employers|
Eligible employers can apply for a wage subsidy of 50% of the apprentice’s or trainee’s wages (up to a maximum of $7,000 per quarter per eligible apprentice or trainee). Where a small business is not able to retain an apprentice, the subsidy will be available to a new employer (not the old employer). This subsidy is only available whilst on JobKeeper (which ceased in Mach 2021).
The employer needs to undertake an eligibility assessment through their Australian Apprenticeship Support Network provider.
|1 January 2020|
|Apprenticeship wage subsidy scheme boost||Additional 50% subsidy for newly engaged apprentice wages||Employers|
Similar to the above, however:
- Available for newly engaged or reengaged apprentices between 5 October 2020 and 31 March 2022
- Must be employed for a 12 month period
- Final claims to be made by 31 March 2022
5 October 2020
|Employee superannuation accounts ‘stapled’ when changing jobs||Easing the administrative burden of employee / employer superannuation||Employees and employers|
The key benefit will reduce the duplication of superannuation accounts for individuals
|JobMaker Hiring Credit||Incentives to hire unemployed workers||Employers|
- JobMaker and JobKeeper cannot overlap
- Employee headcount must increase, when compared against 30 September 2020
- Employee payroll must increase, when compared against 30 September 2020
- New employee must be aged between 16 – 35 years and be receipt of income support payments for at least one of three months before starting employment
JobMaker Hiring Credit benefit:
- $200 per week for each eligible employee aged 16 – 29
- $100 per week for each eligible employee aged 30 – 35
Registration and claims made quarterly commencing in February 2021
|7 October 2020 (for 12 months)|
|Offset tax losses against previously taxed profits (AKA loss carry-back)||Offset previous tax paid on profits, against current or future losses||Companies operating a business|
If you paid tax in the 2018-19 or later income years, you could apply tax losses during the 2019-20, 2020-21 and/or 2021-22 income years. This will then create a tax refund and will be available when lodging 2020-21 and/or 2021-22 and/or 2022-23 tax returns.
For example, if a company paid $27,500 tax on $100,000 profits in the 2018-19 year, no tax/profits in the 2019-20 year and had a $50,000 loss in the 2020-21 year, half of the $27,500 in tax paid can be refunded once the 2019-21 company tax return is lodged.
NB: be careful as the franking credit account cannot be in deficit, which is important for companies that pay dividends.
|1 July 2020|
|Income tax cuts (stage 1)||Previously due to start in July 2022, now backdated to July 2020||Individuals|
Individuals with a taxable income over $37,000, will pay less tax.
The top threshold of the 19% tax bracket will increase from $37,000 to $45,000, and the top threshold of the 32.5% tax bracket will increase from $90,000 to $120,000. As an example, in 2020-21 if your taxable income is:
- $50,000 you will be $1,080 better off when compared to 2019-20
- $120,000 you will be $2,430 better off when compared to 2019-20
Employees should see a benefit as early as November 2020 in wage payments.
|1 July 2020|
|Income tax cuts (stage 2)||Future tax changes||Individuals|
Individuals with a taxable income over $45,000, will pay less tax.
The above stage 1 $45,000 – $120,000 32.5% bracket, will have a new upper threshold of $200,000, with a reduced 30% tax rate.
The 45% tax rate will now only be on taxable incomes more than $200,000.
|1 July 2024|
|Maximum member cap for SMSF’s||Increase from 4 to 6||SMSF||Currently, an SMSF cannot have any more than 4 members. It is proposed for this limit to increase to 6.||TBA|
|Div 7A integrity measures||Deferred start date||Companies||Effort to simplify integrity measures||TBA|