The Morrison Government’s jobs plan is firing into the new financial year with a number of measures coming into force to help protect jobs and connect Australians with jobs as well as measures to support business in putting more Australians on the books.
The tax rate for eligible companies with an aggregated annual turnover below $50 million will decrease from 26 per cent to 25 per cent this financial year, and the turnover threshold for access to a range of small business tax concessions is rising from $10 million to $50 million from 1 July 2021.
The temporary loss carry-back regime will be extended by a further year. Eligible companies with an aggregated annual turnover of up to $5 billion will now also be able to carry-back tax losses from the 2022-23 income year, in addition to the 2019-20, 2020-21 and 2021-22 income years, to offset previously taxed profits as far back as the 2018-19 income year.
The ‘temporary full expensing’ regime for eligible businesses will also be extended by a further year. It will allow businesses with an aggregated annual turnover or total income of up to $5 billion to instantly write off the cost of eligible depreciating assets acquired from 7:30pm AEDT on 6 October 2020 and first used or installed and ready for use by 30 June 2023.
Businesses who hire an eligible job seeker will now be able to receive up to $10,000 in wage subsidies, an increase from $6,500 for some wage subsidies. About 300,000 people may be eligible for the higher wage subsidy.
It will now also be easier to access foundation skills training for Australians with low levels of language, literacy, numeracy and digital literacy skills. The number of available places in the Skills for Education and Employment program has been uncapped and eligibility has been extended to all job seekers, regardless of whether they are on income support, starting from today. Support is also being expanded for the Reading Writing Hotline, connecting more people with this valuable service.
From 1 July more Australian parents will be able to access vital assistance to help them prepare for, or return to, work with a $24.7 million boost to the Morrison Government’s ParentsNext program, which is set to particularly benefit women’s economic security.
The successful Local Jobs Program is also being expanded by $213.5 million to cover all 51 Employment Regions in Australia, starting from today doubling the number of Employment Facilitators, generating skills and training opportunities that are aligned to local employer and industry needs.
There will also be further regulatory relief for higher education and vocational education and training providers. Waivers of regulatory fees and charges will be extended from today until the end of 2021.
The Morrison Government’s Franchising reforms come into force today. Franchisees will benefit from increased cooling off periods and greater certainty about the costs of running their businesses with strengthened prohibitions on franchisors requiring significant capital expenditure or payment for legal costs. Franchisees will also be assisted by better balanced termination procedures, improved disclosure of leasing and marketing fund arrangements, restrictions on certain contract variations and an improved ability for ex-franchisees to conduct future business.
Minister for Employment, Workforce, Skills, Small and Family Business, Stuart Robert, said today was an important milestone in the Morrison Government’s jobs plan which was outlined in the Federal Budget.
‘While we have more people in work today than before the pandemic, record female employment and soaring new apprenticeships there are still too many Australians out of work. Our approach is straightforward—you should be earning or you should be learning.’
‘The changes that come into force today back businesses through lower taxes and put in place the supports Australian job seekers need to get them into that job—whether they need to enhance their skills or simply need to be connected with work opportunities, we’re delivering measures that will help achieve that,’ Minister Robert said.
‘These measures are in lock step with our existing programs including JobTrainer and the Boosting Apprenticeships Commencements wage subsidy which are protecting jobs, connecting people with jobs and skilling Australians for the jobs of tomorrow—all of it is focused on cementing Australia’s economic recovery through getting more Australians in to work through our jobs plan.’ For more information, visit www.dese.gov.au