Starting on 1 July 2017, a number of superannuation reforms announced in the 2016 Federal Budget will take effect. As we quickly approach the end of financial year, there are several impending changes that you may need to consider.
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Bruce from Life Balance Accounting recently sat down with our friends at Aventree Financial to discuss the key deductions for property investors.
One of the most important issues clients have been raising with us over the past four months has been the proposed changes to the superannuation system.
Small Business Entities
For business entities classified as small business, there are a number of excellent tax concessions that you should be aware of. An entity generally turning over up to two million per annum can be classified as a small business and in turn qualify for certain tax concessions. This applies to sole traders, partnerships, companies or trusts.
- $20,000 instant asset write off still applies until 30/06/2017. – Make sure however the asset is installed and ready for use prior to that date. This asset can be a motor vehicle provided the vehicle is used for business purposes.
- Reduced tax rate. – For companies, this is 28.5% (not 30%) applying from and including the 2016 financial year.
- Reduced audit period – Generally a small business entity will be eligible for a two-year amendment period for tax assessments, (as distinct from 4 years.)
- GST – options to pay instalments quarterly but lodge BAS annually. This can be a good option if you always feel a little behind on your bookkeeping.
This is only some of the many excellent concessions available, I would be delighted to discuss any of these with you.
Feel free to contact us:
Telephone: 07 3394 8216
Email: [email protected]
PAYG Tax System
The PAYG income tax system does not only capture salary earners, but also those with extra investment income and business income via quarterly tax notices.