Last night’s Federal Budget built on the unprecedented level of support the Morrison-McCormack Government has provided to support businesses and employees during this one-in-one-hundred-year coronavirus pandemic.
Federal Member for Cowper Pat Conaghan has welcomed the Treasurer Josh Frydenberg providing major support to local businesses in last night’s 2020-21 budget as super-charging incentives for business investment will ultimately protect and create local jobs.
“Last night’s budget delivered on our Coalition Government’s values of rewarding effort and encouraging participation,” Mr Conaghan said.
“I am hopeful because our hard-working local businesses have gotten through the triple-whammy of COVID-19, bushfires and drought, last night’s budget will give them incentive to keep going because of its multi-billion support measures.
“I was a small business owner before entering politics, so I am confident the tax concessions and allowing 99 per cent of businesses to deduct the full cost of depreciable assets of any value in the year they are installed will be a real game-changer for local businesses.
“And the temporary loss carry-back which means businesses can claim back some of the tax paid pre-COVID to offset losses incurred during this recession to 2022 – is a really fair measure as well.”
Since the onset of the pandemic, the Government has provided $257 billion in direct economic support to cushion the blow and strengthen the recovery.
The 2020-21 budget commits a further $98 billion including: $25 billion in direct COVID-19 response measures and $74 billion in new measures to create jobs.
Tax relief for Cowper businesses includes allowing 99 per cent of businesses to deduct the full cost of depreciable assets in the year they are installed (doesn’t apply to buildings, capital works or second-hand assets), and cutting the business tax rate to 25 per cent for companies with a turnover of less than $50 million.
The $4 billion JobMaker Hiring Credit scheme will be a real boost for businesses as well. Treasury estimates the scheme will support 450,000 positions by giving employers incentives from 7 October for each new job they create over the next 12 months that employs someone who has been on JobSeeker, Youth Allowance or Parenting Payment for at least one of the previous three months at the time of hiring.
Employers will gain $200 per week towards the wages of a new hire who is aged 16-29 years. It will be paid at the rate of $100 per week for those aged between 30-35. New hires must work for at least 20 hours a week.
Employers interested in being involved in the JobMaker Hiring Credit scheme can sign up through ATO online services from 7 December. The credit will be paid quarterly in arrears with the first payments made after the first reporting date of 1 February 2021 for the first reporting period from 7 October 2020 to 6 January 2021.
Liz Spry – 0418 928 744