Home topics news Credit: Kelly Sikkema Australian Budget 2020 News Tax Australian Budget 2020 Accountants welcome business tax changes in the 2020-21 Budget Shengyin Li October 8, 2020 The business tax changes under the 2020-21 Budget have been met with positive feedback from professional accounting bodies and tax experts. Two of the key announcements under the Government’s business investment strategy are the immediate expensing and loss carry-back provisions for businesses with an annual turnover of up to $5 billion. Under immediate expensing, businesses will be able to deduct the full cost of eligible assets until 30 June 2022. Further, under loss-carry back changes, businesses will be able to carry back losses regardless of whether they have posted a profit. These two measures aim to inject free cash into companies and boost business investment spending. According to Deloitte analysis on the 2020-21 Budget, a large pool of taxpayers will benefit significantly from these two measures. “The tax loss carry back measure will likely support the takeup of the full expensing of eligible capital assets. Companies that would otherwise have had tax losses available for carry forward would be less likely to respond to that investment incentive. Combined with the tax loss carry back, the cash benefit of full expensing can be accelerated,” wrote Mark Hadassin, Corporate and International Tax partner at Deloitte. The same view is echoed by Dong Li, client manager and chartered accountant from YML Group, who praised the loss carry-back and temporary immediate expensing rules. “The loss carry-back