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Extension of temporary full expensing

Date of effect: 1 July 2022

The government will extend the temporary full expensing of capital investments for 12 months, until 30 June 2023.

Eligible businesses with aggregated annual turnover or total income of less than $5 billion will be allowed to deduct the full cost of eligible depreciable assets of any value, specifically those:

  • acquired from 7:30pm AEDT on 6 October 2020
  • first used or installed ready for use by 30 June 2023 (instead of 30 June 2022, as currently legislated).

Businesses with an aggregated turnover under $50 million will also be able to instantly write off the cost of improvements to existing or second-hand assets.

Among others, this extension will be welcomed by businesses who have ordered plant or equipment that will take longer to deliver than usual due to COVID-impacted supply chains.

Click here to find out what the experts say about business tax changes.

Extension of temporary loss carry-back provision

Date of effect: 1 July 2022

Companies with an aggregated turnover of less than $5 billion can carry back (use) tax losses from the 2022–23 financial year to offset previously taxed profits in 2018–19 or later income years.

They can do this when they lodge their 2022–23 tax return.

(This is one extra financial year compared to the previous carry-back provision.)

The tax refund is limited in that the amount carried back cannot be more than the earlier taxed profits or generate a franking account deficit.

Click here to find out what the experts say about business tax changes.

Expansion of Boosting Apprenticeship Commencements wage subsidy

The government will provide an additional $2.7 billion over four years from 2020–21 to further support businesses and Group Training Organisations to take on new apprentices and trainees.

This measure will:

  • uncap the number of eligible places
  • increase the duration of the wage subsidy to 12 months from the date the apprentice or trainee joins their employer.

From 5 October 2020 to 31 March 2022, businesses of any size can claim the subsidy.

Eligible businesses will be reimbursed up to 50% of the apprentice or trainee’s wages of up to $7,000 a quarter.

Click here to find out what the experts say about business tax changes.

SME Recovery Loan Scheme

Eligible small and medium enterprises (SMEs) — including self-employed individuals and non-profit organisations — can get their business loans guaranteed by the government.

SMEs must have a turnover of up to $250 million and have been either:

  • recipients of the JobKeeper Payment between 4 January 2021 and 28 March 2021
  • located or operating in a local government area that has been disaster declared because of the New South Wales floods in March 2021 and were negatively impacted economically.

The government will provide participating lenders with a guarantee for 80% of secured or unsecured loans of up to $5 million for a term of 10 years and with interest rates capped at 7.5%, with some flexibility around variable-rate loans.

The loans can be used by the SME for a broad range of business purposes, including to support investment and refinance existing loans.

Click here to find out what the experts say about business tax changes.

Expert insights

Get a Budget breakdown from our experts — an accountant, financial planner, and economist — and find out what the changes and opportunities are for you.

We’re here to support you. If you have questions on new schemes or how to build a resilient business, contact us here to book a catch up with an RJ Sanderson professional.

This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.