The Federal Government’s recent change to the corporate tax rate for small business was finalized on the 31st March after a hard fought campaign that required support from minority parties for the government’s plan. As projected in last years’ budget, the Ten Year Enterprise Tax Plan, provides for a number of significant tax changes which will benefit 90,000 or more Australian businesses.
One of the major changes is the definition of small business which extends the turnover threshold from $2 million to $10 million. The change in definition will provide simplified rules & tax benefits around stock takes, the option of accounting for GST on a cash basis and the opportunity to take up more simplified PAYG processes.
One of the other significant tax benefits for the new “small business” enterprises is the immediate asset write off when investing in capital items worth up to $20,000.
The government’s announcement on the 31st March serves as a timely reminder to all small business enterprises that the $20,000 immediate tax write off concludes on the 30th June 2017 & provides an opportunity to those businesses who are contemplating some capital expenditure in the short term. There is no word from the government as to whether the incentive will extend beyond 30th June.
The Garis Group recommends that businesses who are considering capital expenditure up to $20,000 on individual items act before the 30th June to maximize the tax breaks that this incentive provides.
Should you require any further clarification of this tax incentive please call us on 02 4969 4699 for an appointment to discuss.
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