02 6652 7003
The 2015 Federal budget has been a topic of hot conversation recently. This post hopes to clarify two of the main changes that will affect you in regards to your tax.
The Government has expanded accelerated depreciation by allowing small businesses (<$2 million annual revenue) to immediately deduct each asset that cost less than $20,000. This brings the depreciation deduction forward from future years to the current period allowing you to get an immediate tax benefit in buying any assets you may need. This is especially helpful if you’ve had an exceptionally good trading year and expect yearly profit to be higher than usual. The measure will apply to assets acquired from 7.30pm, 12 May 2015 until 30 June 2017 meaning that while you can take advantage of the deduction this year, if your profits are down but things are picking up for you, it may be worth holding off your purchases until after 30 June 2015.
The Government has also proposed changes to allow primary producers to immediately deduct capital expenditure on fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills.
The government is also proposing to reduce the income tax rate from 30 percent to 28.5 per cent for small business companies and provide a 5 per cent tax discount to unincorporated businesses (Sole Traders and Partnerships) with annual turnover less than $2 million from 1 July 2015.
This change is pretty straight forward offering clear tax savings for a lot of our clients.
If you have any questions in regards to how you can take advantage of the new budget changes, please do not hesitate to contact us!
