2021 Financial Changes To Be Aware Of In Australia
While many of us are happy to see the back of 2020, there are some big financial changes coming to Australia this 2021 - so what do you need to know?
Needless to say, 2020 has delivered an unprecedented level of chaos for most Australians. While many of us were still recovering from the largest bushfire disaster our nation had ever seen, the arrival of the coronavirus pandemic brought a whole new wave of economic casualties. Covid-19 also delivered a whole range of unanticipated rules, regulations and laws associated with trying to navigate the virus as a nation, but what exactly is due to change as we head into this year.
2021 Financial Changes For Australian Businesses
While some of the surprise rules look like they’re here to stay for the foreseeable future, others are expected to either roll back, be updated or be scrapped entirely, particularly for 2021 financial changes.
Tax Cuts - Thankfully, we’ll all be getting an extra tax boost when we file our tax return in 2021, via lump sum tax cuts. Early tax cuts were implemented in October 2020, with workers already receiving half of their early tax cuts in their pay.
One Off Support Payments - Disability carers, veterans, family tax benefit recipients and pensioners are set to receive two $250 cash payments, with the first arriving back in December 2020 and the other in March 2021.
Power Prices - A number of industry sources are predicting an increase in energy prices from early 2021, since prices have been at their lowest levels in five years. While wholesale electricity prices had significantly decreased over the last 12 months, this isn’t likely to last.
Paid Parental Leave - With a reduction of hours and jobs, the government has relaxed the rules surrounding paid parental leave so that employees are still eligible for cover. Normally parents must have worked 10 of the previous 13 months, but this has been extended to 10 of the previous 20 months for parents who give birth or adopt a child between March 22, 2020 and March 31, 2021.
Jobkeeper Scheme - JobKeeper will be cut on January 4, 2021 and will be axed completely on March 28, 2021. From January 4 until March 28, 2021, the payment will drop from $1200 to $1000 for full-time workers, and from $750 to $650 per fortnight for part-time employees.
Jobseeker Scheme - JobSeeker recipients receive the Coronavirus Supplement on top of their base rate of payment. While the initial rate of $550 per fortnight expired on September 24 and is now at $250 instead, from January 1 to March 31, it will be paid at a rate of $150 per fortnight.
Jobmaker Scheme - The JobMaker Hiring Credit will give $200 a week to employers who hire anyone aged 16-30, and $100 a week for any worker aged 30-35. Employers will be able to make claims quarterly commencing in February 2021.There are eligibility requirements both on the employees and employers side.
Travel Restrictions - International travel appears to be quite a while off yet, and is considered to be linked to the success of the vaccine. Qantas CEO Allan Joyce has previously indicated that it will be mandatory for travellers looking to fly with the airline.
Immigration - While concessions have been made to those on temporary or bridging visas in Australia, visa allocations for the Global Talent visa have been tripled to assist in attracting high-calibre individuals with specialist skills, along with a pathway to permanent residency.
Where To Source Help With 2021 Financial Changes
If understanding your finances or the in’s and outs of doing business isn’t your strong point, then it may be reassuring to know that you’re not alone. In fact, many businesses (big and small) enlist the services of an accountant and business advisor in order to free up their time, while knowing that their financial obligations are already taken care of by the professionals.
What you choose to invest in or shy away from as a business owner can have a domino effect that ripples through your entire team - so are you confident in your financial choices?
At Muro, we are more than just accountants - we offer our clients strategic business advice and ongoing support to help them reach their business and financial goals. Get in touch with us at Muro today to ensure that you’re on the right path for success in starting a business in 2021.