On July 15, 2015 By Rocky Singh
On Budget night, few great news announced by treasurer to grow small businesses and jobs in the Australian economy.
2015 has been a great year for small businesses with the aggregated turnover less than $2 million that allow small businesses to claim an immediate deduction for assets they start to use – or have installed ready for use – provided each depreciable asset costs less than $20,000. This will temporarily replace the previous instant asset write-off threshold of $1,000. This rules applies to assets acquired on 12 may 2015 after 7:30 pm and will end on 30 June 2017.
What does this mean to you?
According to Rocky Singh, if proper tax planning strategies are applied, small business can save thousands in taxes which help them in improving their cash flows. Most of the assets used in small business can be expensed in same year.
The company tax rate for small businesses will be reduced by 1.5 percentage points to 28.5 per cent. To help all Australian small businesses grow, the Government will also provide a 5 per cent tax discount to unincorporated businesses with annual turnover less than $2 million from 1 July 2015.
What does this mean to you?
According to Rocky Singh, Small Businesses should be looking at their business structure they operate under and structure reviews are required.
The Government will reduce red tape within the Fringe Benefits Tax (FBT) system by expanding the FBT exemption for work related portable electronic devices.
What does this mean to you?
Businesses buy small portable electronic devices for employees does not need to pay FBT. This will help your employees stay connected in the digital economy. Work flow will improve as employees can be contacted when required.
For more information about the new instant asset write-off threshold and assets that are eligible to be deducted, FBT and structure reviews, Contact our office on 07 3160 8474 to speak to Business Accountant.
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