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Planning for 2020: Tax Forecasts and Implications for Businesses

As businesses begin planning for the upcoming year, understanding tax forecasts and potential changes is critical. This blog will offer insights into expected tax changes and provide strategies for businesses to prepare and optimize their financial plans for 2020.


As 2020 approaches, Australian businesses must stay informed about anticipated tax changes to effectively plan and optimize their financial strategies. Understanding these developments is crucial for maintaining compliance and leveraging potential benefits.

Key Tax Changes for 2020

  1. Corporate Tax Rate ReductionIn July 2020, the corporate tax rate for small and family businesses with an aggregated turnover of less than $50 million decreased from 27.5% to 26%. This reduction aims to support business growth and investment.

  2. Instant Asset Write-Off IncreaseThe instant asset write-off threshold was increased to $150,000, allowing businesses to immediately deduct the cost of eligible assets purchased and used or installed ready for use by June 30, 2021. This measure encourages investment in business assets.

  3. Loss Carry-Back SchemeBusinesses can offset tax paid on profits from previous years against current year losses, providing immediate cash flow benefits. This scheme is designed to assist businesses during economic downturns.

Strategies for Businesses

  • Tax PlanningEngage in proactive tax planning to maximize benefits from the instant asset write-off and loss carry-back schemes. Consult with tax professionals to develop strategies tailored to your business needs.

  • Financial ForecastingUpdate financial forecasts to reflect the new tax rates and incentives, ensuring accurate cash flow projections and informed decision-making.

  • Record-KeepingMaintain meticulous records of asset purchases and financial transactions to substantiate claims for deductions and offsets.


Staying informed about tax changes and implementing strategic planning are essential for Australian businesses to navigate the evolving tax landscape in 2020. By understanding and leveraging available tax incentives, businesses can enhance financial stability and support growth initiatives.


If you would like to enquire about tax planning strategies, book a complimentary consultation with DGMS Group.


  1. Australian Government. (2020). Small business tax cuts kick in from July 1 2020. Retrieved from https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/small-business-tax-cuts-kick-july-1-2020

  2. Australian Government. (2020). Australian Federal Budget 2020-2021 – What It Means for You. Retrieved from https://www.klgates.com/Australian-Federal-Budget-2020-2021-What-It-Means-for-You-10-7-2020

  3. Australian Government. (2020). Lower Taxes - Budget Archive. Retrieved from https://archive.budget.gov.au/2020-21/factsheets/download/tax_fact-sheet.pdf

  4. Sheridans. (2020). 2020 Year End Tax Planning Guide. Retrieved from https://www.sheridans.net.au/our-resources/2020-year-end-tax-planning-guide/

  5. PwC. (2020). Australia - Corporate - Taxes on corporate income. Retrieved from https://taxsummaries.pwc.com/australia/corporate/taxes-on-corporate-income


 
 
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