Many Australians will have a little more money in their pockets this year.

Tax cuts were a major feature in last night’s budget, as the government tries to encourage spending to boost the economy amid COVID-19.

WHAT IT MEANS FOR WORKERS 

Executive Director at Pitcher Partners, Craig Whatman, says everyone will benefit in some way, but not evenly.

“Everyone does get some form of tax cut but it obviously varies according to the level of income that you’re on, but it’s really targeted more towards the middle income earners,” he said.

Under the income tax cuts, a person earning between $50,000 will be $1080 better off in the 2020-21 financial year.

A person earning $120,000 will be $2400 better off.

WHAT IT MEANS FOR BUSINESSES

Two budget measures for businesses stood out to Mr Whatman.

“The two most significant ones are the expansion of the instant asset write off, so businesses with turnover of up to $5 billion that acquire depreciating assets will be entitled to an instant tax write off for those assets,” he told Ross and Russel.

“That’s a significant measure.

“The other measure is the tax loss carryback rules. Normally if you incur a loss as a company you have to carry forward that loss and offset it against profits in future income years, but this new rule will actually allow you to offset that loss against profits in prior income years.”

Press PLAY below for more.