2020 has been a year like no other – from bushfires to floods and the COVID-19 pandemic the Australian economy has taken a battering. Watch Sydney’s partners discuss the key takeaway points from the Federal Government’s recent mini-budget.
The 2020 Federal Government Economic and Fiscal Update drew more attention than past years due to:
- The deferral of the annual Federal Budget which is usually handed down in early May
- The Government’s response to the pandemic
- The announcement that the projected deficit is expected to grow to $184.4 billion this financial year
Largely, the mini-budget repeats previously announced and implemented tax measures. Key points such as JobKeeper 2.0 were reviewed by tax partner Mariana von Lucken. In summary JobKeeper 2.0 will:
- Be extended for six months – 28 September 2020 to 28 March 2021
- Be split into two tiers of payments
- Require employers to reassess eligibility based on actual turnover
- Remain open to new recipients as long as they meet the eligibility criteria
Restructuring & Risk Advisory partner, Todd Gammel provided guidance for businesses that are currently feeling uncertain about the future. He emphasised the importance of building a plan. Todd also stressed that the plan must be conservative and present a consistent message to the bank and ATO.
The Federal Budget will be delivered on 6 October 2020. Please go to our COVID-19 Resource Centre which contains articles and updates related to the key tax measures noted in the mini-budget.