2020 Budget Summary



We have summarized the main Tax related budget points released last night.


Personal Income Tax Changes Some welcome tax cuts at the individual level as follows:


Applicable rates from 01 July 2020

Increase on the 19% bracket from $37,000 to $45,000

Increase on the 32.5% bracket from $90,000 to $120,000


The rates would look like this:


Tax Rate

Income Brackets Comment


0 – $18,200

No Change


$18,201 – $45,000

Increased upper limit from $37,000


$45,001 – $120,000

Increased upper limit from $90,000


$120,001 – 180,000

No Change


$180,001 +

No Change



Changes to Low income Tax Offset:

Increase on the offset from $445 to up to $700


For BUSINESS TAX PAYERS  there are some reasonably good news:

1- Expanding access to small business tax Concessions including

  • Deduct certain start up expenditure and certain prepaid expenditure
  • Eligible businesses will be exempt from FBT on car parking and some work-related electronic devices


2- Uncapped immediate write off for depreciable assets

Businesses with turnover of less than $5Bn can claim an immediate deduction on eligible depreciable assets in the year the asset is first used or installed ready for use provided

  • the asset is acquired from 7:30 pm on 06 October 2020
  • it is a NEW ASSET or an IMPROVEMENT


For second-hand assets, the asset can be fully deductible if the cost is less than $150,000 and purchased from 02 April 2019 and first used or installed ready to used by 12 March 2020 and 31 December 2020


3- Write off Simplified Depreciation Pools

Small businesses (turnover under $10mill) can deduct the simplified depreciation pools at the end of the income year up t 30 June 2022.


4- Jobmaker Hiring Credit

The introduction of the Jobmaker Hiring credit applicable to eligible employers hiring eligible employees aged 16 to 35.

The credit will be $200 per week for employees aged 16 to 29

The credit will be $100 per week for employees aged 30 to 35


To be claimed quarterly in arrears with a cap of $10,400 for each additional position created.

Certain criteria for eligibility of employees will apply


5- Tax Free Grants 

The possibility of making government business support grants to be non assessable /non exempt income in other states, just like it currently applies in Victoria.

However, this is not legislated just yet and will be applicable for grants announced after 13 Sept 2020


6-FBT Compliance simplification

Employers will be able to rely on corporate records for FBT purposes instead of employee declarations, thus reducing the compliance for businesses


For COMPANIES only, there is the temporary loss carry back

Applicable for companies with turnover of up to $5bn

Can carry tax losses for years 2020,2021 or 2022 to offset previously taxed profits made in or after 2019 year

There are some limitations for example, the carry back is limited to no more than earlier tax profits and it cannot generate a franking account deficit

Other Budget Tax Concessions

Granny Flat CGT exemption 

From July 2021, there will be a targeted CGT exemption (subject to the legislation been approved) for granny flat arrangements (where elder people transfer their home or proceeds from Sale to Adult children in return for ongoing housing and care)


As usual, if you have any questions please contact us at


From the team





Jobkeeper UPDATE – Businesses now able to claim Jobkeeper for new employees


The government has registered a new legislative instrument on the 14 August, whereby the eligibility date for assessing employees eligible to Jobkeeper is Now 1 July 2020.


As you would recall, the eligibility date for employees to be enrolled in jobkeeper was the 01 March 2020.

Now this date has been shifted to 01 july 2020 providing room for further claims for additional employees initially to September 2020.


And there is another change:

There is now an ability for an employee (and eligible business person ) to RE-NOMINATE for Jobkeeper with a new employer under certain circumstances.


What does this mean to you as employer:

  • Any employees that were employed as at 01 July 2020 under a permanent part time / Full time basis will be eligible for Jobkeeper (subject to the other eligibility conditions)
  • Any long term casual employees that meet the 12 month test as of 01 July 2020 now become eligible for jobkeeper (not employed by any other entity)
  • You may have employees turning 18 between March and July 2020. These employees would be eligible for jobkeeper now
  • Any employees whose immigration status changed between March and June 2020 may be eligible for Jobkeeper


Few clarifications that I am sure you have circling your head at the moment:


  • The change starts for jobkeeper fortnights commencing on 03 August 2020.


  • The ATO has confirmed that for fortnights commencing on the 3rd August and 17 August employers will have until the 31 August to meet the wage payments for employees who are now included in the Jobkeeper under the 1 July eligibility test (not for the prior employees though…..)


  • No, you do not need to satisfy the turnover test again, at least until the 28th September


  • Remember that ALL eligible employees must be in job keeper if they qualify and accept to be nominated.

This is known as the “one in, all in” principle


  • Since August is a 3 fortnight period for the purposes of jobkeeper, you must ensure that your employees receive the minimum $1500 per fortnight for the three fortnights, otherwise you will not be eligible to receive the payment


  • For any new employees entering the scheme you will need to Complete the nomination form as soon as possible (just like you did at the beginning of the scheme.


Feel free to contact us with any enquiries


The team at KARDIA GROUP.


JobKeer UPDATE operative provisions



Some of you would have received a text message on your phones yesterday about 5:48 pm directly with the ATO with some updated information regarding the Jobkeeper subsidy.


So, we thought it would be good if we summarise and give you an updated view of how this program is likely to work.

The actual document is presented by the ATO on the following link:


The operation in broad details is as follows:

  • The scheme requires an initial registration with the ATO. The application for the scheme will start on the 20th April 2020 via online application.

Cant’ give you a link until that date, however would be important to receive updates directly from the ATO. You can subscribe to the updates here:

As soon as the registrations open we will notify you. You will be able to enrol or we will be able to do it for you.


  • You must check your eligibility as employer.Here is where the ATO has provided some additional information:
    1. Determine if you as employer are eligible – AKA the 30% drop in turnover test. / 15% drop in Turnover for ACNC registered Charities

There are three ways to determine the turnover test:

  • Compare your turnover in March 2020 to March 2019
  • Compare your projected turnover in April 2020 to April 2020
  • Compare your Projected turnover April to June 2020 to April to June 2019
  • An alternative test as approved by the ATO .


Few things to mention here:

  • The turnover is based on your GST Turnover. (regardless of your reporting cycle, monthly or quarterly)
  • You only need to meet the test ONCE, however you will have ongoing reporting requirements (not yet defined by the ATO)
  • If you do not qualify as at 30 March 2020, you can apply the tests above for any month or quarter, and once met you will be eligible for the subsidy from that fortnight onwards.


  • Determine eligibility of the employees.
    1. Permanent / part time employed by you at 01 March 2020
    2. Casual employees employed systematically for at least 12 months prior to 01 March 2020
    3. At least 16 years of age
    4. Australian permanent residents / Citizens
    5. Special visa holders


  • Your employees must be Nominated for the jobkeeper program
    1. Notify your employee that you are nominating them
    2. Employee must agree to the nomination by signing the JOBKEEPER EMPLOYEE NOMINATION NOTICE (form can be downloaded from this link:—employee-nomination-notice/
    3. This form is only for your records.
    4. This form is to be returned to the employer before the end of April 2020.


  • Payment must be made:
    1. Once you have determined the eligible employees and your eligibility as employer for the program, you NEED TO PAY the employees at least $1,500 per fortnight.
    2. Continue to pay them for as long as you continue claiming the subsidy or until the end of the program.
    3. Tax must be withheld as appropriate.


  • The employer will be required to process a Claim for the Jobkeeper Payment at the end of the month :
    1. Process claim via ATO portal , likely performed by us, tax agents.
    2. Report No. of eligible employees
    3. report to the ATO on an ongoing basis the number of employees, terminated employees etc.


  • Superannuation:

There seems to be some new rules being introduced by the government to not require super guarantee on the additional payments as a consequence of the Jobkeeper. However this is not finalised.

So, for the moment the position seems to be as follows:


– If your employee earns over $1500 per Fortnight, full super applies as normal.

– If your employee is receiving the payment but not performing any work, there is no requirement for super to be calculating on the amount to $1500.

– If your employee’s wages are less than the Jobkeeper, you only pay super on the actual portion related to the hours worked, any extra payment to reach $1500 is not subject to superannuation


Final Comments:

– All Jobkeeper payments are assessable income for the EMPLOYER

– No GST is applicable in this income

– The final details of the program are not yet released in full, the ATO is still fine-tuning the final details, so we will continue providing updates as they get released.



If you have any questions regarding the above, please call us and we will be happy to discuss further.

The Team at Kardia Group 

T: 07-33924900







SMSF Investment Strategy Update 2020

Just a quick reminder / update regarding SMSF.


As you would be aware, the ATO has recently released detailed guidelines on what the Investment strategy of the SMSF should consider.


With the financial year approaching fast, and under the current circumstances in the economic and health fronts, we thought it would be appropriate to remind you of this little issue well before the year end so you can take actions as required.


We attach the link in case you are interested.


In summary, the guidelines require the investment strategy of the fund to be:

–  a lot more detailed with regards to the investment allocation, risk, funds ability to pay pensions and of course whether to hold insurance cover

– The old approach of investment ranges 0% to 100% is no longer a valid approach accepted by the ATO

– The fund’s investments must be in line with the investment strategy. Or a plan must be provided to either update the investment strategy or change the investment portfolio.

– Reviewed at least once in the financial year, this item is quite applicable after the significant events in March 2020 (Covid  19 pandemic)

– Investment strategies that do not comply with the guidelines may create contraventions raised by auditors which may lead to fines for trustees.


SMSF Auditors will be paying particular attention to this item in the 2020 financial year.

And the ATO has stated that auditors are required to raise a contravention if it meets the reporting criteria or if the issue has been raised in a previous year and continues to be unrectified in the current year.


Please feel free to contact us if you have any questions or concerns with regards to the above.


The Team at KARDIA GROUP, Business Advisors


Please note: The information provided does not represent financial advice. It is mere administration orientated.