Key points in the federal budget 2021-2022
January 1, 2022
Key points in the Federal Budget 2021-2022
The Federal Budget 2021-22 has many announcements and proposals aimed at economic recovery and includes investment in jobs, essential services, business incentives and tax cuts.
Budget Highlights for Business
- Temporary full expensing measures extended until 30 June 2023 - eligible businesses can claim an immediate deduction for the total cost of depreciating assets.
- Temporary loss carry-back rules extended - eligible companies can carry back tax losses from the 2023 financial year to offset tax bills from 2019 onwards.
- Administrative Appeals Tribunal given the power to pause or modify ATO debt recovery action - reducing the legal fees and red tape for small business.
- Tax cuts - small to medium company tax rates will reduce to 25% from 1 July as planned.
- Recognition
Running a business from home—whether as a sole trader, freelancer, or small operator—has many perks. But when it comes to selling your home and potentially saving on tax, recent guidance from the ATO serves as a reality check.
The stakes are high, and now the Tax Ombudsman is getting involved.
Self managed superannuation funds (SMSFs) can offer significant flexibility, allowing the members to make investments and enter arrangements that may not be available through retail or industry superannuation funds. However, However, being an SMSF trustee does come with important responsibilities to ensure that all dealings comply with superannuation law.
