Budget 2021-22

The Balancing Act Budget: Budget 2021-22

The 2021-22 Federal Budget is a balancing act between a better than anticipated deficit ($106 bn), an impending election, and the need to invest in the long term.

The Balancing Act BudgetIt is also a human budget (cynics would say voter-focussed), with $17.7 billion dedicated to aged care, more money in the pockets of low income earners, the COVID vaccine rollout, $2 billion for mental health, a women's economic package including a child care subsidy increase and funding to prevent violence, and a Royal Commission into defence and veteran suicide.

Key initiatives include:
  • Extension of temporary full expensing and loss-carry back providing immediate deductions for business investment in capital assets
  • Introduction of a 'patent box' offering tax concessions on income derived from medical and biotech patents  Read more…

Director Identification Number regime

The New Lifetime Director IDs

Directors will be required to register for a unique identification number that they will keep for life, much like a tax file number under a rewrite of Australia's business registers.

Lifetime Director IDsASIC does not currently verify the identity of directors and Elvis Presley and Bob Marley could "quite possibly" be registered. Or at least that was the view of former ASIC Commissioner John Price at a 2020 Parliamentary inquiry.

The introduction of the Director Identification Number (DIN) regime is part of the Government's Modernisation of Business Registers (MBR) Program creating greater transparency and tracking the movements of individuals over time. The MBR will unify the Australian Business Register and 31 ASIC business registers, including the register of companies. In effect, the system will create one source of truth across Government agencies for individuals and entities and will be managed by the Australian Taxation Office (ATO).  Read more…

Financial tips to survive FY22

The uncertainty of last year is in the rearview, but a bumpy road still lies ahead

More than ever, businesses need to understand and manage their finances to navigate the new terrain of 2021, not just to survive but thrive.

struggle or success2020 lost some great companies, and the years to come will take more. So how can you begin protecting yourself and your investments when the landscape is still shifting below your feet?

Here are some essential tips to consider:

Know your tolerance for financial risk
According to Yelp.com's Local Economic Impact Report, for more than 97,966 businesses, 2020 caught them off guard, causing them to close their doors permanently. Though traffic is picking up for some, there is no promise that revenue will get better for all businesses.

Read more…

Changes to company tax rates

There are changes to the company tax rates

The full company tax rate is 30% and the lower company tax rate is 27.5%. 

tax planning tipsThis information shows when to apply the lower rate and how to work out franking credits.

Company tax rates apply to:

  • companies
  • corporate unit trusts
  • public trading trusts.

The full company tax rate of 30% applies to all companies that are not eligible for the lower company tax rate. Eligibility for the lower company tax rate depends on whether you are a:

  • base rate entity from the 2017–18 to 2021–22 income years
  • small business entity for the 2015–16 and 2016–17 income years.  Read more…

COVID-19 Vaccinations and the Workplace

The first COVID-19 vaccination in Australia rolled out on 21 February 2021

With the rollout, comes a thorny question for employers about individual rights, workplace health and safety, and vaccination enforcement.

vaccineThe rollout, managed in phases, is expected to complete by the end of 2021 (you can check your eligibility here). While the Australian Government's COVID-19 vaccination policy states that vaccination "is not mandatory and individuals may choose not to vaccinate", this does not mean that there will not be punitive initiatives for those failing to vaccinate including proof of vaccination to move across borders. Australia for example, already has a precedent with "No Jab, No Play" policies in place to access child care payments (the ability to object to vaccination on non-medical grounds was removed from 1 January 2016).

Read more…

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