✦ Plain-English Summary

Treasury Laws Amendment (2020 Measures No. 3) Bill 2020

What it does

This bill makes several tax and finance changes, mostly to help businesses during the COVID-19 pandemic. The main moves are: letting businesses write off equipment purchases faster (instant asset write-off), reducing some companies' tax instalments, boosting cash flow payments to employers, and adjusting Australia's arrangements with the International Monetary Fund.

Why it matters

These changes put money back into businesses' pockets during economic uncertainty—either through tax breaks on equipment purchases or direct cash payments. For individuals, it affects whether your employer gets cash support from government, which could indirectly influence hiring and job security.

Key details

• Instant asset write-off extended: Businesses can immediately deduct equipment and asset purchases from their taxes, rather than spreading the deduction over years. This makes it cheaper to buy machinery, tools, or vehicles.

• PAYG tax instalments cut: Companies paying tax instalments in 2020-21 get a reduction, freeing up cash. This expires on 1 July 2025, so it's temporary relief.

• Cash flow boost payments: Extends existing COVID-support payments to eligible employers, topping up their bank accounts directly.

• IMF loan terms updated: Australia adjusted its borrowing arrangements with the International Monetary Fund—mostly technical changes to international finance agreements that don't affect everyday Australians directly.

Official Description

Amends the: International Monetary Agreements Act 1947 to: enable Australia to enter into loan agreements with the International Monetary Fund (IMF); enable Australia to meet its funding obligations under any such agreements, as well as under the existing New Arrangements to Borrow with the IMF; and enable Australia to continue to enter into agreements with other countries to provide them with financial assistance in support of a program of the IMF; Income Tax Assessment Act 1997 to update the list of deductible gift recipients to include three new entities; Income Tax Assessment Act 1997 and Income Tax (Transitional Provisions) Act 1997 to: extend the $150 000 instant asset write-off for a further six months until 31 December 2020; and adjust the criteria for access to the instant asset write-off for businesses that have adopted a substituted accounting period; Taxation Administration Act 1953 to reduce the gross domestic product adjustment factor for the 2020-21 financial year to nil; and Boosting Cash Flow for Employers (Coronavirus Economic Response Package) Act 2020 to clarify that the payments for which an entity can receive a cash flow boost payment include amounts that are subject to withholding under the special withholding obligations applying to certain personal service income payments.

Committee Referrals

Senate Standing Committee for the Scrutiny of Bills

No formal division recorded

This bill passed by voice vote — parliament agreed without calling a formal count. A division is only recorded when a member explicitly requests one.

No votes yet.

No votes were recorded for this bill.