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Upcoming Federal Budget

By WSC Group | Created on September 29, 2020

It seems as if the leaks have already started regarding the upcoming Federal Budget. There is no doubt that the Government will be wanting to continue to stimulate the economy in the way which gives the greatest impact from the expenditure incurred. The PAYG Cash Flow stimulus provided great benefits to businesses, JobKeeper payments and increases to JobSeeker payments have been welcomed by small and medium sized businesses in recent months. But where to from here?

From early indications, it seems that the Government wants to replace these payments within frastructure spending and tax cuts. There has also been some talk about an investment allowance being introduced (currently the $150,000 deduction does not add much value if the business is losing money). An investment allowance will mean that an actual tax benefit will be received for businesses investing in plant. If this stimulates modern technology and manufacturing to make us as a country more self-sufficient, this will be a welcomed move.

There is no doubt that the Federal Government is also attempting to align state Government priorities with its own priorities by supplementing existing infrastructure that states have already earmarked to fast track and commence. One thing is for sure, there is going to be a lot of money spent and no doubt our children and grandchildren’s birth certificate may even mention the amount f debt they need to pay back!

I think the reading media releases in the next two weeks will reveal all.

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