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What changed on 1 July?

What changed on 1 July?

For business

Small businesses now have access to:

 

  • An immediate deduction for depreciating assets costing less than $6,500 (GST exclusive)
  • An immediate deduction on the first $5,000 for new motor vehicles used for business purposes
  • All other assets depreciated at 15% in the year of purchase and 30% in future years.
  • Companies are now able to ‘carry back’ up to $1m of losses offset against previous taxable income years, to enable a refund if prior tax paid.
  • New reporting regime for building & construction industry has been introduced.
  • GST changes to hire purchase agreements entered into from 1 July.  Businesses accounting for GST on a cash basis can claim the full tax credits up front.  All components of the arrangements are now subject to GST, even if credit component is disclosed separately.
  • The Carbon Tax was introduced.
  • A wider range of businesses will qualify for fuel tax credits

For Self Managed Superannuation Funds

  • Concessional contribution cap for those 50 and over is reduced to the same level of contributors who are less than 50 years of age, i.e. $25,000 per annum from all sources

For Individuals

  • Income tax rates changed;
  • 15% tax on super abolished for low income earners;
  • Household assistance package introduced.

What’s pending or deferred

  • LAFHA changes deferred until 1 October 2012.

For SMSFs, the off market transfer restrictions due to commence on 1 July 2012 have been deferred until 2013.

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