Even though the Budget announcements were made back in May this year, all Tax Accountants like myself have been holding our breath until the legislation for these announcements were passed. Small Business owners have been asking me all about the biggest change which was the immediate deduction for assets up to $20,000. I’m excited to say that this has now been passed, and all the small business owners out there can now go shopping! (this is general information, please consult your accountant prior to spending said money!). The Bill to change the Taxation Laws accordingly from the recommendation of the 2015 Budget has now been passed. The changes include;
1. Increase to the Immediate deduction of assets under $1,000 to $20,000. This measure will be available from 12th May (7.30pm) until 1st July 2017. This means a small business owner can take up this deduction for 2015 financial year, and the subsequent financial years of 2016, and 2017.
2. Small Business Owners can also claim accelerated depreciation for general asset pools valued below $20,000. This is for assets pruchased prior to the budget, with a written down value below $20,000.
3. Decrease to Company Tax Rate from 30% to 28.5% from 1st July 2015. This measure applies to businesses with a turnover of less than $2m.
4. Primary producers to claim accelerated depreciation for water facilities, fodder storage and fencing.Primary producers can also now claim an immediate deduction for capital expenditure on water facilities and fencing assets. There is still a few measures waiting to be passed that were announced on Budget night. The most significant is the $20,000 deduction, and this is the one that excites most small business owners. Not sure you are a small business? Contact me now to have a consult.