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Quarterly Newsletter: September 2021

Reminder of superannuation caps indexation for 2022


From 1 July 2021, the superannuation contributions caps have been indexed for the 2022 income year.

The new concessional contributions cap for the 2022 financial year is now $27,500 (increased from $25,000).


The new non-concessional (i.e., non-deductible) contributions cap for the 2022 financial year is now $110,000 or (where the ‘bring forward’ rules are applicable) $330,000 over three years (increased from $100,000 or $300,000 respectively).


The CGT cap amount for the 2022 financial year is now $1,615,000 (increased from $1,565,000).


The increase in the concessional contributions cap in particular will require those salary sacrificing additional superannuation to consider if they wish to increase their packaging arrangements so as to maximise the $2,500 increase in the cap.



Expansion of support for SMEs to access funding


The Government is providing additional support to small and medium sized businesses ('SMEs') by expanding eligibility for the SME Recovery Loan Scheme.


Specifically, in recognition of the continued economic impacts of COVID‑19, the Government will remove requirements for SMEs to have received JobKeeper during the March quarter of 2021, or to have been a flood affected business, in order to be eligible under the SME Recovery Loan Scheme.


As with the existing scheme, SMEs who are dealing with the economic impacts of the coronavirus with a turnover of less than $250 million will be able to access loans of up to $5 million over a term of up to 10 years.


Other key features include:

  • The Government guarantee will be 80% of the loan amount.

  • Lenders are allowed to offer borrowers a repayment holiday of up to 24 months.

  • Loans can be used for a broad range of business purposes, including to support investment, as well as to refinance any pre-existing debt of an eligible borrower.

  • Loans can be either unsecured or secured (excluding residential property).

  • The loans will be available through participating lenders until 31 December 2021.



Time running out to register for the JobMaker Hiring Credit


The JobMaker Hiring Credit scheme's third claim period is now open, so if a taxpayer has taken on additional eligible employees since 7 October 2020, they may be able to claim JobMaker Hiring Credit payments for their business.


Eligible businesses can receive up to:

  • $10,400 over a year for each additional eligible employee hired aged 16 to 29 years; and

  • $5,200 over a year for each additional eligible employee hired aged 30 to 35 years.

The JobMaker Hiring Credit is available to businesses for each additional eligible employee hired before 6 October 2021, so, if a business is thinking about taking on extra staff, they should check if they are eligible to participate in the scheme.



 

Please Note: Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their particular circumstances.