The Federal Government’s Budget handed down on 3 May 2016 has proposed major changes to superannuation on a scale not seen since the introduction of the Simple Super reforms of July 2007. Most of these changes apply from 1 July 2017 so you have just over a year to plan. The reforms may be modified…
DetailsWith financial year 2016 almost over, it is time for small businesses (and individuals) to think about year-end TAX PLANNING. Be sure to contact us now for your Tax Planning needs, so action can be taken to minimise your tax position, well in advance of 30 June 2016 …
An employment status that makes a difference If your business is looking to put on more staff, first of all: congratulations. But secondly, a warning. The engagement status of workers is an important distinction – whether they are employees or independent contractors – and has consequences that can get many employers into unforeseen hot water.…
DetailsThe ATO says it has listened to the concerns of tax professionals, small businesses, industry associations and software providers, and is working towards reducing GST compliance costs for small businesses. “We are reducing the amount of GST information required for the business activity statement (BAS) to simplify GST record keeping and reporting requirements,” the ATO…
DetailsConcessional Contributions Cap Reduced to $25k The annual cap on concessional superannuation contributions will be reduced to $25,000 from 1 July 2017. There will be one cap for all taxpayers irrespective of their age. The cap is currently dependent on the age of the taxpayer as on 30 June of the previous financial year: under…
DetailsLarge multinationals – integrity measures “Google tax” – A new diverted profits tax There will be a new tax aimed at large multinational corporations that artificially divert profits from Australia, from 1 July 2017. A 40% tax on “diverted profits” will apply where the company shifts profits offshore through arrangements that exhibit certain characteristics. The…
DetailsGST will apply to low value imports From 1 July 2017, the GST will apply to low value goods imported by consumers. The intent of this measure is that low value goods imported by consumers will face the same GST regime as goods sourced domestically. Overseas suppliers that have an annual Australian turnover of $75,000…
DetailsRaising the 32.5% personal income tax threshold The Government will increase the 32.5% personal income tax threshold from $80,000 to $87,000 from 1 July 2016. This measure will reduce the marginal tax rate on incomes between $80,000 and $87,000 from 37% to 32.5%. The Government anticipates that this change will prevent around 500,000 taxpayers from…
DetailsThe Government will increase the small business entity turnover threshold from $2 million to $10 million from 1 July 2016. The current $2 million threshold will be retained for access to the small business CGT concessions. The eligibility threshold for the unincorporated small business tax discount will be raised to $5 million. The Government anticipates…
DetailsThe $20,000 temporary instant asset write-off is extended to businesses with an aggregated annual turnover of less than $10 million. The write-off can provide businesses with some cash benefit. For example, a business with an effective tax rate of 30% can receive up to $5,999 as a tax refund if an asset costing less than…
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