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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