Budget written on paper laying on drawings of graphs

2021 Budget & Business Tax Implications

Have you had a chance to distill the outcomes of the 2021 budget?  No doubt, the budget tax measures are positive for small and medium enterprises.

Measures that support business investment such as the 12-month extension to the immediate expensing of assets and tax loss carrybacks and the new patent box tax regime are all promising.

In addition, there are very few additional tax imposts on business, which is a welcome change of approach.

Noteworthy tax measures in the budget include: 

  • Low and middle-income earners will receive up to $1080 for individuals and $2160 for couples in tax offsets.
  • More than 99% of businesses will be able to write off the full value of any eligible asset they purchase until 30 June 2023.
  • A concessional patent tax rate of 17% to apply to income derived from medical and biotechnology patents registered after the Budget announcement.
  • Extension of temporary full expensing and temporary loss carry-back measures until 30 June 2023.
  • ATO Early Engagement Service, or “concierge” to support businesses wishing to invest in Australia.
  • Individual tax residency based on 183 days (or more) physical presence in Australia as a ‘bright-line’ test.

For full details on elements of the 2021 Budget visit https://budget.gov.au/ or for an in-depth reviews visit  articles by Deloitte and PWC

To discuss the budget and your personal or business implications, please don’t hesitate to contact your STS accountant or bookkeeper.