1. $20,000 Instant Asset Write-Off
The Government announced that they would extend the $20,000 Instant Asset Write-Off threshold for an additional year. This means that a business has the ability to acquire an eligible depreciating costing less than $20,000 and claim a full depreciation charge for the cost of that asset in their 2017 or 2018 income tax return provided that the asset that is installed ready for use by 30 June 2018.
Importantly, the Government has also extended the aggregated annual turnover threshold for a Small Business Entity (SBE) from $2.0m to $10.0m with effect from 1 July 2016. This means that a SBE with an aggregated annual turnover of less than $10m can immediately write off eligible depreciating asset purchases of less than $20,000 provided that the asset is installed ready for use by 30 June 2018
2. Small Business Entity – Aggregated Turnover Threshold
With effect from 1 July 2016 the aggregated turnover threshold for determining whether an incorporated business is a Small Business Entity (SBE) has been increased from $2.0m to $10.0m. This will mean that businesses with less than $10m in aggregated annual turnover will be able to access the simplified depreciation rules, simplified trading stock rules and have a 2 year review period for amending assessments rather than a 4 year amendment period.
The unincorporated small business tax discount will be increased from 5% to 16% over a 10 year period and the aggregated annual turnover threshold will be increased to $5.0m
Unfortunately, the Government in announcing this change has determined that the $10.0m aggregated annual turnover threshold will not apply to the SBE Aggregated Turnover threshold for the purposes of accessing the small business capital gains tax concessions. This threshold remains at $2.0m and continues to be excluded from indexation.
3. Small Business Capital Gains Tax Concessions
The Government announced that they will amend the Small Business CGT concessions to ensure that the concessions can only be used in respect to assets used in a small business or ownership interests in a small business. This is an integrity measure.
4. Levy if your business employs a foreign worker on certain skilled visas
From 1 March 2018 if your business employs a foreign worker who is in Australia under a Temporary Skill Shortage Visa then you will have to make an upfront payment per visa per year for each worker. The annual upfront payments are as follows:
For each foreign worker that is sponsored under either the Employer Nomination Scheme (subclass 186) visa or a permanent Regional Sponsored Migration Scheme (subclass 187) visa then you will be required to make a one off payment for each foreign worker. The one off payment will be:
If you would like further information regarding your business please contact the office 03 9629 1433
