Tax News Update    Email this document    Print this document  

October 14, 2020
2020-2716

Australia enacts 2020-21 Federal Budget measures

The following measures announced as part of the 2020-21 Federal Budget received royal assent and were enacted on 14 October 2020:

Measure

Application of amendments

Tax loss carrybacks for businesses with global revenue of less than AU$5 billion

Apply to assessments made in the 2020-21 and 2021-22 income years (e.g., 31 December 2020 and 31 December 2021 for taxpayers with an Australian tax year end of 31 December (in lieu of the following 30 June))

Immediate expensing of eligible assets used or installed by 30 June 2022 for businesses with global revenue of less than AU$5 billion

Apply to depreciating assets first held, and first used or installed ready for use from 7:30pm (AEDT) on 6 October 2020

Increased access to small business tax concessions for businesses with global revenue of less than AU$50 million

Mostly income years starting on or after 1 July 2021, except for:

  • Fringe benefits: from 1 April 2021
  • Prepaid and start-up expenses: On or after 1 July 2020

Significant changes to Australia's research and development tax incentive regime from 1 July 2021 onwards

Income years commencing on or after 1 July 2021

For details on the budget's provisions, see EY Global Tax Alert, Australia issues 2020-21 Federal Budget, dated 7 October 2020.

———————————————
CONTACTS

For additional information with respect to this Alert, please contact the following:

Ernst & Young (Australia), Sydney

  • Alf Capito, Tax Policy Services
    alf.capito@au.ey.com
  • Sean Monahan, International Tax and Transaction Services
    sean.monahan@au.ey.com
  • Antoinette Elias, Financial Services
    antoinette.elias@au.ey.com
  • Anthony Seve, Transfer Pricing
    anthony.seve@au.ey.com
  • Colin Jones, Built Environment and Resources
    colin.jones@au.ey.com

Ernst & Young (Australia), Perth

  • Scott Grimley, Government Services, Health Life Sciences
    scott.grimley@au.ey.com

Ernst & Young (Australia), Melbourne

  • Tony Merlo, Tax Policy Services
    tony.merlo@au.ey.com
  • Andrew van Dinter, Global Compliance & Reporting
    andrew.van.dinter@au.ey.com
  • Peter Janetzki, Technology and Consumer Products
    peter.janetzki@au.ey.com
  • Anne Giugni, People Advisory Services
    anne.giugni@au.ey.com
  • Brad Miller, Indirect Tax
    brad.miller@au.ey.com

Ernst & Young (Australia), Brisbane

  • Reid Zulpo, Transaction Tax
    reid.zulpo@au.ey.com
  • Ian Burgess, Private
    ian.burgess@au.ey.com

Ernst & Young (Australia), Canberra

  • Todd Wills, Business Tax Services
    todd.wills@au.ey.com

Ernst & Young (New Zealand), Auckland

  • Kirsty Keating, Law
    kirsty.keating@nz.ey.com

Ernst & Young LLP (United States), Australian Tax Desk, New York

  • David Burns
    david.burns1@ey.com

Ernst & Young LLP (United Kingdom), Australian Tax Desk, London

  • Naomi Ross
    naomi.ross@uk.ey.com

———————————————
ATTACHMENT

PDF version of this Tax Alert

 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 1996 – 2024, Ernst & Young LLP

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

EY US Tax News Update Master Agreement | EY Privacy Statement