Coronavirus Supplement extended (but reduced)
The Federal Government’s Coronavirus Supplement has been extended for a further three months. The Supplement payments were due to end on 31 December 2020, but the latest extension will allow them to run until 31 March 2021, which will be welcome news for many individuals still struggling with unemployment and other economic difficulties associated with the COVID-19 pandemic. However, the Supplement rate will be further cut from 1 January 2021 to $150 per fortnight.
Budget personal tax cuts and business concessions now law
Several tax announcements from the 2020 Federal Budget have now been passed into law.
Personal tax cuts brought forward to 1 July 2020
In the Budget, the Government announced that it will bring forward to 1 July 2020 the personal tax cuts (Stage 2) that were previously legislated in 2018 to commence from 1 July 2022. The Stage 3 tax changes remain unchanged and commence from 1 July 2024, as previously legislated:
COVID-19 and FBT: updated ATO advice
The ATO has updated its COVID-19 and fringe benefits tax (FBT) advice, providing a useful outline of some issues that may arise due to an employer’s response to COVID-19.
TIP: Although the following summary deals with FBT specifically, it is worth thinking through the related income tax consequences. Contact us to find out more.