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Repeal of the Mineral Resource Rent Tax and Other Measures Bill Posted on October 9, 2018
The repeal has consequences for the normal business taxpayer including the following:
The loss carry back rules will no longer be available and this is for the 2013/2014 financial year.
The small business instant asset write off threshold has been rolled back to old levels. The allowance was for the instant write off of any asset purchased costing under $6,500 and this has now been reduced to prior levels of $1,000. This will take effect from 1 January 2014 and any businesses which have already completed their 2014 income tax returns need to reflect the new threshold.
Reduction in the low pool value threshold under which a small business entity may deduct the value of its small business pool to $1,000 (from the previous $6,500).
The bill also repealed the special motor vehicle deductions that had been available. This includes the immediate write off of $5,000 on the purchase of a motor vehicle and the pooling of vehicles which then had a cost base of less than $6,500. Once again this takes effect from 1 January 2014.
The phasing in of Superannuation Guarantee rates has also been repealed. The rate will now remain at 9.5% until July 2021 at which time it will increase by 0.5% per year until it reaches the 12% level that had been promised. I.e. 10% in 2021/2022, 10.5% in 2022/2023, 11% in 2023/2024, 11.5% in 2024/2025 and 12% on 1 July 2025.
The Low Income Superannuation contribution will cease from 1 July 2017.
The school children’s bonus will be repealed from 31 December 2016. This bonus is also to be income tested which will limit eligibility to those families whose adjusted taxable income is less than $100,000.
Click here to find out how this could affect your current situation.