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Important information for Small Businesses – Proposed Tax Changes Posted on October 9, 2018
One of the proposed bills is in relation to the repeal of the Carbon Tax. If this bill goes through, the previous legislated changes for income tax cuts will not go ahead – including the raising of the tax free threshold.
The other proposed bill which could have a significant effect on small business operators is the repeal of the Minerals Resources Rent Tax. The effect of this legislation will be:
The repeal of the loss carry back rules for companies with effect from the 2013/14 income year.
The reduction in the small business instant asset write off threshold back to $1,000 from the current $6,500. The instant asset write off threshold will be adjusted from 1 January 2014.
This instant write off reduction will also affect low pool closing balances – currently if the closing balance is $6,500 the balance can be written off, at 30 June 2014 the balance would need to be less than $1,000 for the full write off to occur.
The repeal of the accelerated depreciation for motor vehicles where currently the first $5,500 of the vehicle cost has been available for immediate deduction. If the legislation is passed this accelerated write off will no longer be available for cars purchased after 1 January 2014.
Other changes as a result of this proposed legislation will be:
There will be a re-phrasing of the change in rate of the Superannuation Guarantee Charge percentage whereby it will remain at the current rate of 9.25% for 2014/15 and 2015/16.
The repeal of the Low Income Superannuation contribution.
The repeal of the school children’s bonus.