JobKeeper, JobMaker, HomeBuilder, Instant Asset Write-Off Scheme
It’s easy (and sometimes quite nice) to forget about tax and business announcements over the silly season.
Here’s a quick refresh:
JOBKEEPER
This incentive is split into two different extensions, both with two different tiers.
Up until 3 January 2021:
Tier 1: $1,200 per fortnight (before tax)
Tier 2: $750 per fortnight (before tax).
4 January 2021 to 28 March 2021:
Tier 1: $1,000 per fortnight (before tax)
Tier 2: $650 per fortnight (before tax).
The tier levels are as follows:
- Tier 1 rate: employees who worked for 80 hours or more in the four weeks of pay periods before either 1 March 2020 or 1 July 2020, and eligible business participants who were actively engaged in the business for 80 hours or more in February
- Tier 2 rate: any other eligible employees and eligible business participants.
JOBMAKER
This incentive allows businesses to receive hiring credits when they hire eligible employees:
- $200 per week for each eligible additional employee aged 16–29 years old inclusive.
- $100 per week for each eligible additional employee aged 30–35 years old inclusive.
Eligible employers can access the scheme between 7 October 2020 and 6 October 2021, for a maximum claim period of 12 months from their employment commencement date.
HOMEBUILDER
This incentive provides eligible owner-occupiers with a grant to build a new home or substantially renovate an existing home.
The HomeBuilder has been extended to 31 March 2021.
Other significant changes include:
An extended deadline for all applications to be submitted. Applications can now be submitted up until 14 April 2021
An extension to the construction commencement time from three months to six months.
Increases in property price caps for New South Wales and Victoria to $950,000 and $850,000, respectively. A price cap of $750,000 continues to apply in all other States and Territories.
INSTANT ASSET WRITE-OFF SCHEME
For assets purchased before 31 December 2020, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset, in the year the asset is first used or installed ready for use.
Significant changes:
An increase in asset threshold from $30,000 to $150,000
Eligibility extends to businesses with an aggregated turnover of less than $500 million (up from $50 million)
