Dear Valued Client
Here we are once again at the end of another financial year! I can hear you all saying where does the time go – We have had a very successful year and would like to thank you all for your support and at times patience! We would also like to thank many of you for referring us to your family and friends. It is very much appreciated!
Your taxation team is myself, of course, Liz who has been with me for over a year and I have just employed Helen as our receptionist.
$20,000 Write off for Small Businesses
The Government announced it will expand accelerated depreciation for small businesses by allowing small business with aggregate annual turnover of less than $2 million to immediately deduct each asset that costs less than $20,000 (excluding GST). The measure will apply to assets acquired from 7.30pm, 12 May 2015 until 30 June 2017. This will replace the previous instant asset write-off threshold of $1,000.
Tax Updates
In the 2015-16 Federal Budget, the government announced that it will exclude people who are fly-in fly-out and drive-in drive-out workers whose normal residence is not within a zone from claiming the Zone Tax Offset from the 2015-16 tax year. It will still be applicable for the 2015 tax year.
Medical Expenses Offset has been abolished for 2015 unless you made a claim in your 2014 Tax Return in which case you may be able to make a claim this year if your out of pocket expenses exceed $2,218 but it also depends on your taxable income.
The Medicare levy surcharge (MLS) is designed to reduce the demand on the public Medicare system. If you or your family do not have an appropriate level of private patient hospital cover you may be required to pay the MLS. The base income threshold is $90,000 for singles and $180,000 for families.
Super contributions must be received by your Super Fund by the 30th June to be considered a tax deduction
The government is proposing to reduce the income tax rate to 28.5 per cent for small business companies (i.e. with an aggregated annual turnover of less than $2 million).
Companies with an aggregated annual turnover of $2 million or above will continue to be subject to the current 30 per cent tax rate on all their taxable income.
The current maximum franking credit rate for a distribution will remain unchanged at 30 per cent for all companies, maintaining the existing arrangements for investors.
If you are an unincorporated entity (that is a sole trader or a partnership) then you will get a discount of $1,000 in your tax return.
These changes apply from the 2015–16 income year.
We wish you a very successful upcoming financial year and Many Happy Tax Returns.