I am delighted that the Morrison Government’s tax relief package has passed the Parliament today, meaning almost 11 million Australians will be able to keep and spend more of their own money.
This package brings forward Stage two of our Personal Income Tax Plan by two years and comes at a crucial time for the Australian economy as the nation begins to recover from the impacts of COVID-19.
These tax cuts are forecast to create 100,000 jobs by the end of 2021-22 and boost our GDP by around $6 billion in 2021 and $19 billion in 2021-22 by giving businesses the confidence to invest, expand and employ more Australians.
From July 2020, Stage two of the Morrison Government’s Personal Income Tax Plan will boost economic growth and job creation by:
- Increasing the low income tax offset from $445 to $700;
- Increasing the top threshold of the 19 per cent tax bracket from $37,000 to $45,000;
- Increasing the top threshold of the 32.5 per cent tax bracket from $90,000 to $120,000; and
- Providing a targeted one-off additional payment of up to $1,080 in 2020-21 as part of the low and middle income tax offset (LMITO).
Local businesses to receive boost under budget
Hard working Australian businesses who have been hit hard by the pandemic through no fault of their own are also at the centre of the Morrison Government’s tax relief package.
Businesses across regional Victoria are set to benefit from vital growth and jobs boosting measures that will ensure Australia will recover from the pandemic and return to a COVID-normal economy. This includes:
- Expanding the Instant Asset Write Off to over 99% of businesses who will be able to write off the full value of any eligible asset they purchase for their business before June 2022.
- Temporarily allowing companies with a turnover of up to $5 billion to offset tax losses against previous profits on which tax has been paid.
- Expanding the existing 10 small business tax concessions to companies with an aggregated annual turnover between $10 million and $50 million.
- Maintaining the cash flow boost payments to keep businesses open keep more Australians in work.
- Investing an additional $2 billion through the Research and Development Tax Incentive to boost R&D spending for 11,400 innovative Australian companies.
The Morrison Government’s 2020-21 budget is all about creating jobs and helping businesses to invest in local communities so we can recover from the pandemic and continue to hard work of securing Australia’s economic future.
9 October 2020