We are pleased to supply you with the special Budget edition of Client Alert, which outlines key announcements of the October 2020 Federal Budget.

Touted as the most significant Federal Budget in decades, the Government’s 2020 delivery sets the scene for a slow climb back to surplus and out of the first recession in almost 30 years. This will not be a soft event, but a back-to-basics focus on boosting the economy.

In a budget that is encouraging spending on many levels, there are lots of tax related measures for business, as well as a number of positives for individuals. Industry hasn’t been forgotten either with a number of supporting measures for Agriculture, Real Estate, Education, Infrastructure, Aged care and Child care.

Amongst the measures for business, the Treasurer has delivered a budget focussing on:

  • Asset Write-offs – enabling businesses to deduct the full cost of new capital assets and for small and medium sized businesses, second –hand assets will also be covered.
  • Business Concessions – loss carry back provisions for businesses will be provided to offset current losses on to previous tax paid.
  • Cuts to personal tax rates – and also for Cash Handouts to pensioners and some other welfare recipients to stimulate the economy.

Finally, it’s worth highlighting the changing gears for business innovation with the paring back of the changes to Research and Development incentives.

With the rough and rugged path carved out by the pandemic, it will be an endurance ride for Australian businesses and the economy with the aim of improving cash flows and, ultimately, creating jobs.


Please do not hesitate to reach out if you wish to discuss any of the points raised in this Alert.