In a joint statement, the Treasurer and the Assistant Treasurer have announced further tax relief and reduced red tape for businesses as part of the government’s economic recovery plan.
The expanded concessions will apply in three phases:
- From 1 July 2020, eligible businesses will be able to immediately deduct certain start-up expenses and certain prepaid expenditure.
- From 1 April 2021, eligible businesses will be exempt from the 47 per cent fringe benefits tax on car parking and multiple work-related portable electronic devices, such as phones or laptops, provided to employees.
- From 1 July 2021, eligible businesses will be able to access the simplified trading stock rules, remit pay-as-you-go (PAYG) instalments based on GDP adjusted notional tax, and settle excise duty and excise-equivalent customs duty monthly on eligible goods. Eligible businesses will also have a two-year amendment period apply to income tax assessments for income years starting from 1 July 2021.
These changes are estimated to support an additional 20,000 businesses and their employees.
“Small business is the backbone of our economy. The Morrison government will continue to support our small and medium-sized businesses as part of our economic recovery plan,” said Josh Frydenberg and Michael Sukkar.
Additionally, the pair announced that from 1 July 2021, the Commissioner of Taxation’s power to create a simplified accounting method determination for GST purposes will be expanded to apply to businesses below the $50 million aggregated annual turnover threshold.
“This announcement builds on the extensive support provided for small and medium-sized businesses during the COVID-19 crisis that has included JobKeeper, extending the instant asset write-off, providing a cash flow boost of up to $100,000 for employing small businesses, and boosting access to capital through our COVID-19 SME Loan Guarantee Scheme,” Mr Frydenberg and Mr Sukkar said.