The JobKeeper Payment, at $130B, is the single biggest economic support measure in Australia’s history. The more we hear and read, the more confident we are that this measure has definitely hit the mark and will be the saviour for many businesses and thousands of jobs.
The third and largest COVID-19 (coronavirus) support package to date is a $130 billion economic injection designed to save jobs for the next 6 months. In this package, businesses may be entitled to receive a fortnightly wage subsidy of $1,500 per employee.
The so-called JobKeeper Payment is designed to keep people in work and the Government expects up to 6 million people will benefit from the subsidy.
The federal government continues to release a range of measures to support both business and individuals as a result of COVID-19.
This update primarily focuses on the government’s second round of stimulus measures. We also outline key concessions announced to date by major banks and provide a brief update on state government announcements.
Federal and state governments have announced various measures to support the economy in the wake of the impact of COVID-19.
In this summary, we address the key announcements to date, including Tasmanian state government and ATO support.
With only two more sleeps until the 2019 Federal election, Australians have a plethora of promises to consider. We’ve found a very helpful comparison of the two major parties’ tax policies, released by The Tax Institute.
To a large extent, the parties have sought to differentiate themselves through their tax policies. Their proposals present two different versions of Australia. In the Coalition’s 2019 Budget, we were presented with a long-term plan for “lower, simpler, fairer taxes”. Labor have presented their response as a plan for a “fair go”.
Our views below are simply related to the parties’ tax policies in isolation, and how these might affect our clients. Of course, you will need a broader perspective to assess the overall merits of each party.
The 2017-18 Federal Budget delivers an overall optimistic economic and fiscal outlook for Australia. After a 2016-17 budget deficit of $37.6bn, the deficit for 2017-18 is forecast to be down to $29.4 billion. Following that comes a projected surplus in 2020-21 of $7.4bn.
The Budget also anticipates an economic rebound, with growth at 3.0% from 2018-19. Forecast tax receipts for 2017-18 have been revised up by $6.4bn over the forward estimates to 2019-20 due to a range of new policy measures announced in the budget.
Housing affordability has been one of the major components of this year’s Federal Budget, which featured a comprehensive package of tax and superannuation measures aimed at increasing housing availability and improving affordability. The government has also reigned in tax breaks enjoyed by many residential property investors in the hope of providing Australians with confidence that tax concessions are correctly targeted. These measures will be complemented by a number of supply-side initiatives including the release of Commonwealth land and housing supply targets.
The Turnbull Government’s Federal Budget, delivered on 3rd May 2017, included the most significant structural changes to the Australian superannuation system since compulsory superannuation was first introduced. Pre-budget speculation had anticipated many changes, however some have gone much further than anticipated.
An increase in the middle tax bracket from $80,000 to $87,000 is long overdue and works to overcome the significant bracket creep issues of recent years.
Gareth Atkins, Synectic
From 1 July 2016, the government will increase the 32.5% personal income tax threshold from $80,000 to $87,000.
Delivering his first Federal Budget on 3rd May 2016, Treasurer Scott Morrison said that tax breaks have been given to small businesses first as they are “more likely to reinvest their earning and more likely to be Australian owned.”