Australia: Tax provisions in 2020 federal budget

Australia: Tax provisions in 2020 federal budget

The Treasurer today, 6 October 2020, presented the 2020 federal budget.

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The budget includes measures ranging from individual tax to banking, superannuation, infrastructure, health, defence, education, climate change, and more.

On the taxation front, there is good news for businesses with group turnover of less than $5 billion.* There is an immediate deduction for the cost of capital assets acquired and installed between 6 October 2020 and 30 June 2022. Companies of this size can also benefit from a temporary loss carryback,  that would allow losses incurred in 2020, 2021 or 2022 to be carried back to 2019 or later years. Other tax provisions include:

  • Bringing forward, and backdating to 1 July 2020, individual tax cuts for those with incomes below $120,000. 
  • Withdrawal of previously proposed reductions to research and development (R&D) tax incentives and increasing the incentive (effective from 1 July 2021).

The KPMG member firm in Australia has prepared a series of reports that explore the implications across the array of key focus areas raised in the government’s federal budget announcements, and how these will affect businesses, the economy, and industries moving forward.


Read the series of budget reports on a dedicated KPMG webpage.

*$=Australian dollar

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