Debt ConsolidationJuly 8, 2016
Organising for tax timeJuly 8, 2016
Since the announcement of the new budget, there’s been a lot of discussion among businesses as to how it will affect them. The 2015-16 Federal Budget is focused on encouraging for investments through a wide range of incentives that are aimed on small business.
The main developments in the 2015-16 Budget for business are:
- Tax cuts for small business and $20,000 accelerated tax deductions: this is, however, limited to businesses with turnover of less than $2 million. This is to give small businesses a chance to grow, invest and create jobs.
- Reductions on the cost of starting a new business: as of 1 July 2015, businesses will be able to streamline their registration, write-off tax faster for start-up expenses such as professional, legal and accounting advice.
- Increase in depreciation rates for primary producers: as of 1 July 2015, the government will allow all primary producers to immediately deduct capital disbursement on fencing and water facilities and depreciate all capital expenditure storage assets for animal food such as tanks used for storing grains and silo among other animal feed over three years.
- Extending the GST base: to capture a wider range of online digital products.
- Parental Leave Pay (‘PLP’): the government will be making sure that all primary carers would have access to PLP’s that are at least equal to the maximum PLP benefit
- Increase in asset test threshold for aged pension:
- For a single person- eligible to receive full pension is relevant value of included assets is less than $250, 000 for a homeowner
- For a pensioner couple- full pension is receivable if the relevant combined valued of included assets is less than $375, 000 for a homeowner
- Medicare levy: family income threshold will increase by $3, 238 for each dependant child or student and $33, 044 for single seniors and pensioners
Research and Development (‘R&D’) tax incentive: a $100 million cap introduced by the government on the eligible amount of R&D expenditure for which a tax offset at concessional rate can be claimed by companies.
Call Tax Accountants Cranbourne at 1300 300 106 for further information.