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With the Coalition Government recently reelected, the Federal Budget announced earlier this year includes announcements that may impact your business.
All the changes announced are what the Government plans to do. No changes are law yet, and none are implemented purely off the back of being presented in the Federal Budget. Before making any decisions, you need to check whether any of these announcements have become law.
Lower taxes for small businesses
The Government is backing small and medium-sized businesses by increasing the instant asset write-off threshold to $30,000 and increasing the annual turnover threshold from $10 million to $50 million.
The Government will also fast-track the company tax rate cut to 25% for small and medium‑sized businesses with an annual turnover of less than $50 million and increases to the unincorporated small business tax discount rate.
Recovering unpaid super
While most employers do the right thing, some employers don't pay super when they should. The Government will provide $42.1 million over four years to the ATO, with the increased funds used to increase activities relating to unpaid tax and super liabilities. These activities will focus on larger businesses to ensure on-time payment of their tax and super.
Delivering skills for today and tomorrow
The Government is introducing a $525 million skills package that will deliver up to 80,000 additional apprentices over five years to occupations experiencing skill shortages. Plus, employers who take on apprentices in areas of need will be eligible for a $4,000 incentive payment. Apprentices will be eligible for a total of $2,000 to be paid at key milestones.
See our Federal Budget fact sheet 2019/20 (PDF) for a full breakdown of the budget and find further details at www.budget.gov.au.
You can also visit the Cbus website to contact your local Cbus representative.
This update is intended to keep readers informed of current and/or proposed developments in superannuation and is not intended to be used as a substitute for professional advice. It doesn't take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the relevant Cbus Product Disclosure Statement to decide whether Cbus is right for you. Call us on 1300 361 784 or visit www.cbussuper.com.au for a copy. All care has been taken to ensure that the information contained herein is correct. United Super Pty Ltd ABN 46 006 261 623 expressly disclaims all liability and responsibility to any person who relies, or partially relies, upon the content, any error or misprint, or for any person who acts on this information.
Cbus' Trustee: United Super Pty Ltd ABN 46 006 261 623 AFSL 233792 Cbus ABN 75 493 363 262.