By announcing a comprehensive review of the previous government’s unlegislated tax changes dating back many years Treasurer Joe Hockey is wasting no time. By December, Treasurer Joe Hockey hopes to announce those changes that will not be legislated, and which ones will find their way into legislation.
What follows is a short overview of the proposed changes that may affect both you and your business.
Proposed Changes that may Affect your Small Business
Draft legislation has already been prepared to tackle some of the more unpopular recent changes, such as the carbon tax and the ineffective Minerals Rent Resources Tax (“MRRT”).
Removal of the MRRT will, however, come at the expense of some other changes that were funded by this impost on the mining industry. Included in the draft Bill are changes which will affect Small Business, such as:
- repealing the loss carry-back rules that have operated since 1 July 2012;
- scaling back the small business asset write-off threshold from $6,500 to $1,000;
- removing the small business accelerated motor vehicle depreciation claim, which currently allows the first $5,000 plus 15% of the balance to be claimed in the first year;
- slowing down the rate of increase in the superannuation guarantee charge, by keeping the current 9.25% rate in place until the 2016 year.
Proposed Changes that may Affect You
Only a small proportion of the more than 100 of the previous governments proposals are expected to remain. Scheduled proposals to go, include the removal of the FBT statutory car method and the cap on self-education expenses.
Furthermore the Federal Government intends to drop the proposed tax on Superannuation earnings above $100,000. These proposed changes may affect your personal remuneration or your succession planning.
Should you have any questions in relation to this announcement and its potential impact on your business, including what to do before 31 December 2013 please contact our Commercial Lawyers Sydney at Pavuk Legal by clicking here.