May 2021 Business Finance Update
Want to stay on top of the latest business news? Read on:
Businesses get tax breaks
Commercial property searches soar
Workers returning to CBD
ATO launches new business hub
Read more below.
Businesses get tax breaks in latest budget
The federal government, in its recent budget, announced two tax incentives for small and medium businesses, to encourage hiring and investment.
First, as of 1 July 2021, the company tax rate will fall, from 27.5% to 25%, for businesses with an aggregated turnover of less than $50 million.
Second, the temporary full expensing and temporary loss carry-back provisions – which were introduced during the pandemic – will be extended for another year.
The government estimates these temporary measures will create around 60,000 jobs by the end of 2022‑23.
Meanwhile, in another budget measure, the government will make it easier for businesses to offer employee share schemes.
The government will modernise the tax treatment of employee share schemes by removing the cessation of employment taxing point for tax-deferred schemes.
Businesses hunting for showrooms, warehouses and offices
Large numbers of buyers are in the market for commercial property, according to data from realcommercial.com.au.
After a record-breaking March, the number of 'Buy' searches fell slightly in April – but was still the second-highest month on record.
Total 'Buy' searches for April 2021 were 61% higher than the year before. The increase for each category was:
Showrooms = up 147%
Retail = up 143%
Warehouses = up 143%
Land = up 137%
Medical = up 131%
Offices = up 112%
Hotel/leisure = up 61%
Commercial farming = up 19%
Meanwhile, ‘Lease’ searches recorded an even bigger year-on-year increase, of 65%.
Workers swapping kitchen tables for office desks
CBD occupancy rates have been trending up during 2021, especially in Sydney and Melbourne, according to the Property Council of Australia.
Between January and April, occupancy rates increased in six of the eight capitals:
Darwin = 80% to 84%
Hobart = 80% to 82%
Perth = 66% to 70%
Adelaide = 69% to 70%
Brisbane = 63% to 63%
Canberra = 68% to 63%
Sydney = 45% to 59%
Melbourne = 31% to 41%
Property Council chief executive Ken Morrison said the results demonstrate welcome progress towards the reactivation of our city centres.
“The benefits of bustling CBDs are significant, not just for the small businesses that rely on city foot traffic, but for the broader Australian economy,” he said.
To entice workers back to the city, the Property Council has helped coordinate a series of activities, events and freebies in different cities, including FOMO Fridays in Melbourne and Fridays in the City in Brisbane.
ATO launches more user-friendly business hub
The Australian Taxation Office has a new business hub. The Business Portal is out; Online Services for Business is in.
Online Services for Business (OSB) is now the ATO’s default service for businesses that interact directly with the tax office online.
OSB makes it easier for businesses to interact with the ATO and provides a secure channel to manage tax and super obligations. It can be accessed on multiple devices, including phones or tablets.
Businesses can access all the services available in the Business Portal, and can now also:
View and print tax returns and income tax history
Create payment plans
Switch between your businesses with a single log in
Customise your homepage
Access new secure mail subjects
You can use OSB by logging in with your myGovID, as with the Business Portal. If you don’t have a myGovID, you can set one up by clicking here.
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