The Government handed down the 2020–21 Mid-Year Economic and Fiscal Outlook (MYEFO) on 17 December 2020, with several proposed changes to tax and superannuation laws. You can access the MYEFO papers on budget.gov.auExternal Link.
| Measure name | Proposed start date | Developments |
|---|---|---|
| Alcohol Taxation — automatic remission of excise duty for alcohol manufacturers | 1 July 2021 | TBA |
| Changes to foreign investment monetary thresholds and fees | 1 January 2021 | Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2020External Link (Act No. 115 of 2020)Royal assent 10 December 2020 |
| COVID-19 Response Package — further updates to making Victoria’s business support grants non-assessable, non-exempt income for tax purposes | 12 December 2020 | Treasury Laws Amendment (2020 Measures No. 5) Act 2020External Link (Act No. 118 of 2020)Royal assent 11 December 2020 |
| JobMaker Plan — temporary full expensing — expansion of eligibility and minor amendments | 1 January 2021 | Treasury Laws Amendment (2020 Measures No. 6) Act 2020External Link (Act No. 141 of 2020)Royal Assent 17 December 2020 |
| Superannuation — KiwiSaver accounts | 12 months after Royal Assent (11 December 2020) or by proclamation | Treasury Laws Amendment (2020 Measures No. 5) Act 2020External Link (Act No. 118 of 2020)Royal Assent 11 December 2020 |
| Superannuation — amendments to commutation rules for certain income stream products | Royal Assent | TBA |
Budget 2020–21
The Government handed down the 2020–21 Budget on 6 October 2020, with several changes to tax and superannuation laws (see budget.gov.au)External Link.
Find out about:
The following announced measures are now law:
- Increase the small business entity turnover threshold
- Loss carry back
- JobMaker Plan – temporary full expensing to support investment and jobs
- JobMaker Plan – bringing forward the Personal Income Tax Plan
The following measure is still subject to the passage of legislation:
For progress on other announced changes to tax and superannuation policy and law, see the table below.
| Measure name | Proposed start date | Developments |
|---|---|---|
| JobMaker Plan – JobMaker Hiring Credit | 7 October 2020 | Economic Recovery Package (JobMaker Hiring Credit) Amendment Act 2020External Link (Act No. 96 of 2020)Royal Assent 13 November 2020 |
| COVID-19 Response Package – JobKeeper payment extension | 28 September 2020 | Coronavirus Economic Response Package (Jobkeeper Payments) Amendment Act 2020External Link (Act No. 81 of 2020)Royal assent 3 September 2020 |
| JobMaker Plan – temporary loss carry-back to support cash flow | First day of the first quarter after royal assent. The loss carry-back offset rules apply to assessments for: the 2020–21 income year; and the 2021–22 income year | Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020External Link (Act No. 92 of 2020)Royal assent 14 October 2020 |
| JobMaker Plan – bringing forward the Personal Income Tax Plan and retaining the low and middle income tax offset | 1 July 2020 | Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020External Link (Act No. 92 of 2020)Royal assent 14 October 2020 |
| JobMaker Plan – temporary full expensing to support investment and jobs | 7.30pm AEDT on 6 October 2020 | Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020External Link (Act No. 92 of 2020)Royal assent 14 October 2020 |
| Increase the small business entity turnover threshold | 1 July 2020 or 1 April 2021 | Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020External Link (Act No. 92 of 2020)Royal assent 14 October 2020 |
| JobMaker Plan – Research and Development Tax Incentive – supporting Australia’s economic recovery | 1 July 2021 | Treasury Laws Amendment (A Tax Plan for the COVID-19 Economic Recovery) Act 2020External Link (Act No. 92 of 2020)Royal assent 14 October 2020 |
| Strengthening Australia’s Foreign Investment Framework | 1 January 2021 | Foreign Investment Reform (Protecting Australia’s National Security) Bill 2020External Link (Act No. 114 of 2020)Foreign Acquisitions and Takeovers Fees Imposition Amendment Bill 2020External Link (Act No. 115 of 2020)Royal assent 10 December 2020 |
| Superannuation Reform | 1 July 2021 | TBA |
| Fringe Benefits Tax – reducing the compliance burden of record keeping | First FBT year after royal assent | TBA |
| JobMaker Plan – Digital Business Plan – Expanding Digital Identity | 1 October 2020 | TBA |
| JobMaker Plan – Digital Business Plan – Greater Adoption of Electronic Invoicing | 1 July 2021 | TBA |
| Supporting older Australians – exempting granny flat arrangements from capital gains tax | 1 July following royal assent | TBA |
| Fringe Benefits Tax – exemption to support retraining and reskilling | 2 October 2020 | TBA |
| Clarifying the corporate residency test | 1 July following royal assent | TBA |
| Media Reforms Package – screen sector support | 1 July 2021 | TBA |
| Privileges and Immunities — clarify income tax exemptions available to individuals engaged by the International Monetary Fund and the World Bank Group | 1 July 2017 | TBA |
| International tax – Updating the list of exchange of information jurisdictions | 1 July 2021 | TBA |
| COVID-19 Response Package – making Victoria’s business support grants non-assessable, non-exempt income for tax purposes | 12 Decembe43r 2020 | Treasury Laws Amendment (2020 Measures No. 5) Act 2020External Link (Act No. 118 of 2020)Royal assent 11 December 2020 |
| JobMaker Plan – supporting small business and responsible lending | 1 January 2021 | Corporations Amendment (Corporate Insolvency Reforms) Act 2020External Link (Act No. 130 of 2020)Royal assent 15 December 2020 |
| JobMaker Plan – Simplified Trade System | 1 July 2021 | TBA |
| Philanthropy – updates to the list of specifically listed deductible gift recipients | Various | TBA |
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