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October 14, 2020
2020-6481

Australia enacts 202021 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.

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

Ernst & Young (Australia), Sydney
Ernst & Young (Australia), Perth
Ernst & Young (Australia), Melbourne
Ernst & Young (Australia), Brisbane
Ernst & Young (Australia), Canberra
Ernst & Young (New Zealand), Auckland
Ernst & Young LLP (United States), Australian Tax Desk, New York
Ernst & Young LLP (United Kingdom), Australian Tax Desk, London

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