On 9 May 2017, the Government announced an extension to the 2015-16 Budget measure providing an instant asset write-off provision for small business.
Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased between 7:30PM on 12 May 2015 and 30 June 2018.
This deduction can be used for each asset that costs less than $20,000, whether new or second-hand. You can claim the deduction through your tax return, in the year the asset was first used or installed ready for use.
The current 'lock out' laws for simplified depreciation rules will continue to be suspended until 30 June 2018.
Please contact your LBW representative if you require further information in relation to this item
This is a reminder for everyone to check prior to 30 June 2017:
Concessional Contribution - Check that you haven’t breached the $30,000 employer contributions limit (or $35,000 if you are over 50 years) if you have been salary sacrificing into super. If you do want to claim the amount contributed, ensure that the amount has been cleared and receipted by your super fund’s bank account by 30th June 2017; and
Pensions - If you are receiving a pension from your super fund, please make sure you take at least the minimum pension amount required by 30 June 2017. Note that if you do not take at least the minimum pension, your super fund will not receive the pension tax exemption and will pay 15% tax rather than 0%. If you are unsure about your pension payment amount for the current year please contact us.
Please note that internet transactions made on Friday 30 June 2017 will most likely not be counted for the current year as the transaction receipt will be dated 1 or 3 July 2017, not 30 June 2017. If you have a self managed super fund and you need to make a contribution or make a pension payment we suggest writing a cheque and giving it to yourselves or LBW to bank it for you. This will satisfy the rules.
If you would like further information on these rules please contact Simon Flowers, Matthew Grapsas or Cathy Walley on 5221 6111.
The state budget usually plays second fiddle to the Federal budget however there were a few items worth noting in the most current Victorian State Budget including:
- From 1 July 2017 property transfers between spouses involving commercial properties or investment properties will no longer be exempt from stamp duty. Therefore if you are planning on restructuring, you may wish to consider doing so prior to 1 July 2017.
- Introduction of a vacant property tax of 1% of the property’s capital improved value
- Introduction of yearly land tax valuations instead of every 2 years commencing 1 January 2019
- Payroll tax free threshold to increase to $650,000 from 1 July 2018.
- Lower payroll tax rate of 3.65% will apply form 1 July 2017 for employers who have at least 85% of their employees in regional locations.