Nicholas Kohler Director

E [email protected]
T +61 (8) 8110 6012
F +61 (8) 8110 6013

October 2015

Newsletter; Writing off pooled assets purchased prior to the $20,000 budget announcement, 2016 small business tax cuts & Lodging tax returns on the last day

 

Writing off pooled assets purchased prior to the $20,000 budget announcement

From 12 May 2015 to 30 Jun 2017, small business entities (with a turnover of less than two million dollars) can immediately write off each eligible business asset they buy costing less than $20,000 per asset (up from $1,000). Other assets over $20,000 will need to be pooled.

The additional benefit is that assets over $1,000 that were previously pooled can effectively be claimed as an immediate write off if the total value of the pool is less than $20,000 on June 30.

 

2016 small business tax cuts

From 1 July 2015 (entities with a turnover of less than two million dollars):
- individual taxpayers with business income from an unincorporated entity will receive a tax offset to reduce their tax by 5% (capped at $1,000);
- company’s tax rates will be reduced from 30% to 28.5% (while franking credits will remain at 30%).

 

Lodging tax returns on the last day

Even if you’re expecting a large tax bill, you shouldn’t delay doing your tax return until the last minute. It can be finalised earlier so you know what to expect, with the lodgement delayed to allow you additional time to arrange payment (most tax returns aren’t due until 15 May so the payment won’t be required until June).

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