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Consult Australia 2020-21 Budget Response The Federal Budget was handed down by the Treasurer on 6 October 2020. Consult Australia welcomes the Government’s continued commitment to infrastructure investment including infrastructure stimulus, and annual analytical assessments of infrastructure market capacity by Infrastructure Australia. Budget measures to increase the already record investment in infrastructure by a further $14 billion for new and accelerated infrastructure projects are good to see. Consult Australia’s message to governments is to get moving on a pipeline of new projects that can be brought to market quickly and efficiently. Infrastructure Australia’s assessment of market capacity is going to play a key role in infrastructure planning so that we see a smooth sustainable pipeline of work across the infrastructure sector. Peaks and troughs of work are not good for maintaining jobs and growth, so by industry and governments working together on capacity, and introducing greater efficiencies in the delivery of infrastructure projects, we can realise excellent productivity outcomes for every dollar spent. It will be important that governments engage with industry early and quickly on getting these projects to market in the most efficient way possible. This will provide certainty for job planning and growth. There is an opportunity here for our industry and governments to work collaboratively to deliver something remarkable that will not only provide job security for many but also provide first-class infrastructure that will benefit Australian’s for decades to come. Other highlights from the Budget included: • $ 4.6 million over four years from 2020-21 to develop and implement a new procurement policy that will require large businesses to pay their suppliers within 20 days. This policy will apply to businesses with an annual turnover greater than $100 million that are undertaking Commonwealth Government contracts that meet the specified threshold. • $70 million in 2020-21 to support the mental health and financial wellbeing of small businesses impacted by COVID-19, including $4.3 million to provide free and
tailored support for small business owners by expanding Beyond Blue’s NewAccess program. • $146.3 million over five years from 202021 for a package of initiatives to improve education outcomes of young Australians. The package also includes $27.3 million over five years from 2020-21 to enhance STEM skills, including $4.8 million to enhance teaching practices by partnering teachers with STEM professionals. • Expanded access to a range of small business tax concessions by increasing the small business entity turnover threshold for these concessions from $10 million to $50 million. This will be delivered in three phases from 1 July 2020 to 1 July 2021. Eligible businesses will be: o Able to deduct certain start-up expenses and certain prepaid expenditure, o Exempt from the 47 per cent fringe benefits tax on car parking and multiple work-related portable electronic devices (such as phones or laptops) provided to employees; and o Able to access the simplified trading stock rules, remit pay as you go (PAYG)
instalments based on GDP adjusted notional tax, and settle excise duty and excise-equivalent customs duty monthly on eligible goods under the small business entity concession. •F ull and immediate expensing of depreciable assets for businesses with aggregated annual turnover of less than $5 billion enabling them to deduct the full cost of eligible capital assets acquired from Budget night and first used or installed by 30 June 2022. • Eligible companies will be able to carry back tax losses from the 2019-20, 2020-21 or 2021-22 income years to offset previously taxed profits in 2018-19 or later income years. Corporate tax entities with an aggregated turnover of less than $5 billion can apply tax losses against taxed profits in a previous year, generating a refundable tax offset in the year in which the loss is made. Consult Australia’s summary of the Federal Budget for members is available to read here. James Robertson Consult Australia Note: If you work for a Consult Australia member and don’t already have a log-in, please follow the create log-in prompts to set this up.
