The Government passed its updated Personal Income Tax Plan announced in the 2019-20 budget last year, ensuring that Australians pay lower taxes. Low and middle income earners will receive a benefit when they lodge returns from 1 July 2020, with millions more to benefit over the next decade. Under the already legislated part of the plan, the Low and Middle Income Tax Offset (LMITO) will provide tax relief of up to $1080 at the end of each tax year to 2021-22. It is projected that the LMITO will assist more than 10 million Australians.
The tax rate for small businesses structured as companies with turnovers of less than $50 million will decrease from 27.5 per cent to 26 per cent while the unincorporated tax discount will increase from 8 per cent to 13 per cent to ensure that sole traders benefit from the corporate tax cut.
The Government is providing two separate $750 payments to social security, veteran and other income support recipients and eligible concession card holders. Around half of those that benefit are pensioners. These payments support households to manage the economic impact of the Coronavirus. The second payment (announced on 22 March 2020) will be available to people who are eligible payment recipients and concession card holders on 10 July 2020.
The Government has extended the $150,000 instant asset write-off for six months from 1 July 2020 to 31 December 2020 for Australian businesses with annual turnover of less than $500 million.
Building on the initial success of scheme, which saw it fully subscribed, a further 10,000 guarantees will become available to first home buyers from 1 July 2020.
The Government has increased the Medicare levy low income thresholds for individuals and families, and individuals and families eligible for Senior and Pensioner Tax Offset in line with movements in the CPI.
While superannuation helps people save for retirement, the Government recognises that for those significantly financially affected by the Coronavirus, accessing some of their superannuation today may outweigh the benefits of maintaining those savings until retirement. Eligible Australian and New Zealand citizens and permanent residents will be able to apply online through myGov to access up to $10,000 of their superannuation from 1 July 2020 until 24 September 2020.