What does the federal budget mean for the transport industry?

Under full expensing, eligible businesses with an aggregated turnover of up to $5 billion can deduct the full cost of eligible assets, including trucks and trailers. Assets will need to be used for the first time or installed ready for use by 30 June 2023.

Since the introduction of full expensing last year, new truck sales have soared and many transport businesses have taken advantage of renewing their fleets which can only have a good safety outcome with new technologies such as advanced emergency braking and other safety technologies.

This extension will not only help businesses seeking to buy new equipment but businesses with an aggregated turnover of less than $50 million can fully expense second hand assets giving a great opportunity to buy a late model second hand truck to replace older equipment.

Temporary loss carry-back will also be extended by one year. This will allow eligible companies to carry-back tax losses from the 2022-23 income years to offset previously taxed profits as far back as the 2018-19 income years. Companies with aggregated annual turnover of up to $5 billion can apply tax losses incurred during the 2019-20, 2020-21, 2021-22 and now the 2022-23 income years to offset tax paid in 2018-19 or later years. The tax refund will be available to companies when they lodge their 2020-21, 2021-22 and now 2022-23 tax returns. This will help increase cash flow for businesses in future years and support companies that were profitable and paying tax but find themselves in a loss position as a result of the COVID-19 pandemic. Temporary loss carry-back also complements the temporary full expensing measure by allowing more companies to take advantage of expensing, while it is available, further supporting Australia’s economic recovery.

There are changes to the company tax rates. The full company tax rate is 30% and the lower company tax rate is 27.5%. The company tax rate for small and medium businesses (aggregated turnover up to $50 million) will fall to 25 per cent from 1 July 2021. To find out your eligibility visit www.ato. gov.au/rates/changes-to-company-tax-rates/

The $450 per month threshold for the superannuation guarantee will be removed. using tech solutions.

The deregulation package is intended to support Australia’s economic recovery by “cutting red tape for businesses interacting with government”. The government estimates the package will reduce compliance costs for businesses, individuals and not-for-profits, by $430 million annually.

Small business can also expect to benefit from the government’s $10 million investment in regulatory technology.

This funding will go toward the development of new digital tools that will help employers understand and comply with modern awards.

Personally, the Low and Middle Income Tax Offset (LMITO) has been extended until the end of next financial year (202122) - with a one-off tax offset worth $1,080 to those earning from $48,000 to $90,000.

Other key measures for the transport industry in the budget include: • $15.2 billion in additional infrastructure commitments • $1 billion in 2022-23 to identify and deliver road safety projects such as road widening and audio tactile line marking and • $16.5 million over four years to establish the National Freight Data Hub • $5.1 million over four years for the Office of Road Safety • $12.1 million over three years for the

National Heavy Vehicle Regulator to fund engineering assessments of local government road infrastructure. These assessments will support the increased use of high productivity trucks on local roads, which increases productivity and safety.

Since the introduction of full expensing last year, new truck sales have soared and many transport businesses have taken advantage of renewing their fleets

These employees will now be entitled to super. The superannuation guarantee rate will increase to 10 per cent on 1 July 2021

The Government will extend the Boosting Apprenticeship Commencements program. Business can access a 50 per cent wage subsidy over 12 months for newly commencing apprentices or trainees signed up by 31 March 2022. The subsidy is capped at $7,000 per quarter per apprentice or trainee.

Small businesses are set to benefit from the government’s $134.6 million deregulation package, which aims to help employers comply with workplace law