The Federal Budget delivered on 6th of Oct will support many small to medium business to survive and regrow Post COVID. There were significant tax incentives announced by the Treasurer to support the businesses and put Australia back to recovery. Some of the key incentives that affect SME are:

Tax relief for individuals

The government is bringing forward stage two of its personal income tax plan by two years. From 1 July 2020:

• the low-income tax offset will increase from $445 to $700;
• the top threshold of the 19 per cent tax bracket will increase from $37,000 to $45,000; and
• the top threshold of the 32.5 per cent tax bracket will increase from $90,000 to $120,000

Loss carry-back for businesses

• The government is allowing companies with turnover up to $5 billion to offset losses against previous profits on which tax has been paid, to generate a refund.
• Losses incurred up to 2021‑22 can be carried back against profits made in or after 2018‑19. Eligible companies may elect to receive a tax refund when they lodge their 2020‑21 and 2021‑22 tax returns.
• Normally, businesses would have to return to profit before they can use their losses, however, these measures will enable companies to bring and utilise losses instead of waiting for a profit.
• This measure is estimated to deliver $4.9 billion in tax relief to businesses over the forward estimates, and $3.9 billion over the medium term.

Full Asset write off (no more threshold)

• To support new investment and increase business cash flow, any assets purchased from 6th of October 2020 until 20 June 2022, businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted.
• This is the biggest measure for small and big businesses to now write off asset instead of depreciating over the years.

Jobmaker Hiring Credit

• The government’s new Jobmaker Hiring Credit is expected to help accelerate growth in employment during the recovery by giving businesses incentives to take on additional employees that are young job seekers aged 16 to 35 years old.
• Under this measure, businesses will receive the Jobmaker hiring credit of $200 per week for every worker aged up to 30 and $100 a week if they hire an eligible young person aged 30 to 35 years, payable for the next 12 months for new hires who work at least 20 hours per week.
• The Jobmaker Hiring Credit is estimated to support around 450,000 positions for young people and cost $4 billion from 2020-21 to 2022‑23.

MEDIA RELEASE:

Melbourne entrepreneur Arpana Patel named as finalist for Small Business Advisor of the year 2020

Melbourne business woman and overnight entrepreneur Arpana Patel of Avenue Accounting Services, has been named a finalist in the Small Business Advisor category of the AMP Women in Finance Awards, announced on August 3rd. The Awards are dedicated to recognising the outstanding women shaping and influencing the financial services industry.

“This really is a huge honour for me, as I never expected to be recognised for an award like this,” explains Ms Patel. “My choice to become an entrepreneur and start my own Accounting and Taxation business was really made for me and it happened overnight.  My marriage had ended and with two young children to care for, I had to act fast. I had to shift my mindset and take a leap of faith and start my own business.”

Arpana wants to help lead change and be an example to others who may be facing similar challenges in their lives, she faced some individual challenges including having to care for her child with special needs whilst establishing and managing her business.

“There are a lot of barriers and stereotypes that women experience. I want to help change that. I want to show others who may be facing adversity that you can turn things around, you can create new possibilities and achieve great things if you set your mind to it.”

Although Australia has made significant strides towards equality, women still continue to experience inequality in many aspects of their lives.  Women and mothers who experienced hardship due to marriage breakdown, job loss or health issues are often at a higher risk of financial insecurity and more likely to experience financial distress.  When asked about the importance of financial security, Ms Patel explains that her services help to ensure small business owners can improve their financial literacy and achieve their financial goals.

“Great client service, transparent pricing and tailoring a solution to the unique needs of our small business clients are some of the reasons our business has grown since it was established in 2014,” says Ms Patel. In recent times with the rise of the global pandemic Avenue Accounting Services have continued prosper despite a difficult business environment.

AMP Women in Finance Award Winners will be announced via a live broadcast on Thursday 10th of September 2020 at 6pm.

For more about the AMP Women in Finance Awards, visit: https://www.womeninfinanceawards.com.au/

Media Enquiries:  Please contact Small Chilli Marketing

As a registered tax agent, AveSol Accounting plays an important role in helping taxpayers
meet their tax and superannuation lodgment obligations. To help us manage this workload,
ATO provides a lodgement program that accommodates progressive document lodgment over
a 12-month period.

The lodgment program framework promotes a level playing field among registered agents by
benchmarking lodgment performance.

The framework recognises agents who:

• have good practice management
• lodge electronically
• are consistently on time.

AveSol Accounting Services is proud to be meeting the 85% on-time lodgment performance benchmark for the last 3 years in a row. We are proud that our firm is maintaining the integrity of our clients and actively engaging them with the tax system through education, advice, and assistance.

AveSol accounting services is determined in future to maintain the same level of achievement and assist small businesses in meeting their tax and super obligations.

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