Top Tax Changes 2020-21

Note that, in some cases, implementation of these changes may be dependent on the future passage of the necessary legislation.

From 1 July 2020, the top threshold of the 19% personal income tax bracket is increased from $37,000 to $45,000 and the top threshold of the 32.5% bracket is increased from $90,000 to $120,000
From 1 July 2020, changes to the government-funded Paid Parental Leave (PPL) scheme allow primary carers to access parental leave pay more flexibly, particularly birth mothers and adoptive parents who are self-employed or small business owners
Study and training repayment thresholds and rates for 2020–21
The indexed amount of the Dependant (Invalid and Carer) Tax Offset (DICTO) for the 2020–21 income year is $2,816
The low income tax offset (LITO) for the 2020–21 income year is $700

Eligible companies are able to carry back a tax loss from the 2019–20, 2020–21 or 2021–22 income years to offset previously taxed profits in the 2018–19 or later income years
For private companies with a regular 30 June balance date, the Div 7A benchmark interest rate for 2020–21 is 4.52%
A range of small business concessions are available for medium business entities with aggregated turnover of $50 million over a phased-in period from 1 July 2020 to 1 July 2021
Small business entities and medium business entities are eligible for the temporary full expensing of depreciating assets, including second-hand assets, acquired from 7.30 pm AEDT on 6 October 2020 until 30 June 2022
The threshold for immediate write-off for assets (also known as instant asset write-off) for small businesses has increased to $150,000 until 31 December 2020. For assets not otherwise eligible for the temporary full expensing there is an extension for first use or installation until 30 June 2021
The balance of all small business pools will be immediately deductible for income years ending after 1 July 2020 until 30 June 2022
Certain start-up capital costs for a proposed business are deductible for medium businesses from 2020–21 under the blackhole expenditure provisions

The luxury car tax threshold for 2020–21 is $68,740 and the fuel-efficient car limit for 2020–21 is $75,565

Employers with an aggregated turnover of up to $50 million will be eligible for the car parking exemption from 1 April 2021
Employers with an aggregated turnover of up to $50 million will be eligible for the work-related items exemption on multiple items from 1 April 2021