• New Wave Accountants

Australia’s 2021–22 Federal Budget: Business Tax Incentives

The Australian government has always been transparent when it comes to the new implementations brought out by its constituents. Such a privilege has been proven time and time again, and the recent business tax incentives are no different. Last May 11, 2021, the Australian Treasurer, Josh Frydenberg announced the inclusions within the incentives, ushering in new features and opportunities for all business owners to develop their ventures further.


This shouldn’t come as a shock as such inclusions have always been a part of the government’s goal to help out as many business owners as they can for the continuous growth of the economy, something that had suffered a major blow in the previous year due to the pandemic. With this move, they hope to assist countless ventures in regaining their footing amidst the major slump.


If you happen to be a business owner yourself and you are curious to know more about these amazing business tax incentives, no need to worry. We have listed some of the most notable ones below for your reference. Keep them in mind for the next time that you or your accountant will process your taxes.


1. For the Patent Box Regime


This one refers to the new patent box tax regime that aims to motivate innovation. This is in relation to the development of medical and biotechnology patents, stretching out towards July 1, 2022 for the clean energy sector.


From July 1, 2022 onwards, a concessional effective corporate tax rate of 17 per cent will be made available. This is a considerable decrease compared to the tax rate of 30 per cent from the previous years. In order to qualify for this, the patent must have been applied before the budget announcement was even made back on May 11, 2021.


2. For Intangible Assets


The recent inclusion will enable taxpayers to assess their intangible assets, all of which may include their copyright, software, patents, and registered designs beginning from July 1, 2023. This inclusion was done in order to encourage people to invest more in these fields of expertise, something that wasn’t as common in the previous years.


Perhaps this move is aimed at the more obscure industries. One thing’s for sure; we may see a sudden boom or demand within these ventures in the foreseeable future.


3. For Offshore Petroleum Production


Even the oil industry was included in the recent business tax incentive announcements, albeit a slightly different execution with the technicalities. To be more precise, there will be a temporary levy on offshore petroleum production. This was done to help them recover the costs of decommissioning the Laminaria-Corallina Oilfields.


But that’s not the only good news. The temporary loss carry-back measures and the instant asset write-off were given leeway, extending for another year. Aside from the fact that this will help their respective owners regain their footing, it will also help a lot of their personnel in the process, bringing in the opportunity to have consistent pay and work incentives.


Conclusion


These new business tax incentives and inclusions are not only implemented for the good of the industries they are being given to; they are also put in place to give everyone the equal opportunity to grow their ventures amidst an economy that has suffered a major blow in recent years.


With these inclusions, hope for much better financial growth is expected to happen sooner than later. Hopefully, these business tax incentives may usher in a more formidable economy that no pandemic may ever negatively affect in the future.


With that being said, if you are looking for the best tax accountant on the Gold Coast, look no further than our experts here at New Wave Accounting. We provide end-to-end accounting and bookkeeping services that help scale and grow businesses. Contact us today and let us handle all your accounting needs.


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