30.06.2016 WILL SOON BE HERE
So here’s a list of some things you should be thinking about, if they apply to you.
- The $20,000 write-off
– will it last?? This is available to small business entities (generally those with a turnover of less than $2.0 million per annum). It relates to any business asset, new or used, even a car. Purchases in May or June are quite tax effective, both for GST and tax purposes. In theory, this “concession” will flow to 30 June 2017 but don’t count on it. The Liberal government, at 31.12.13, suddenly cancelled a similar concession brought in by the Labour government – it was legislated to go to 30 June 2014 but was canned 6 months early. With an election due in July (???) and both parties looking for spending cuts, this concession could go after 30 June. - Claims for cars:
From 1 July 2015, there are only 2 ways to claim for a non-commercial vehicle –
a) The log book method
b) Cents per km, up to 5000k, at a rate of 66 cents per km for all cars. That means a maximum of $3300 p.a. Running any passenger/non-commercial vehicle, even at, say, 30% business use, will give you a better claim (unless your car have a very low value). So keeping a log book over the April/May/June quarter may save your tax. - Staff Super
– consider paying it in June 2016, not July 2016.
Put it in your calendar now. A simple tax saver that all businesses should try to use. - Both political parties are currently discussing various strategies that impact on the tax system. Three of those areas involve super, negative gearing, and capital gains tax. All ‘may” change in some way after “July 2016”. Given that retrospective legislation is very unlikely, any super or investment decisions you make will probably avoid any future changes.
- Every month, we find examples of clients who do not have wills, have outdated wills or who have ineffective wills because they have married or had children (or for some other reason). A current will is essential for anyone, but even more so for those in business. Without such a document, survivors face very long (12-18 month) periods of suffering and uncertainty. Give it some thought.
The above material is general in nature.
Please contact us if you have any questions about this material Richard Abel & Alan Chang, March 2016