Federal Budget 2015
What's in this years Federal Budget for me?
For those in business the big news is the immediate write-off of assets that cost less than $20,000. You must be a small business with an aggregate annual turnover of less than $2 million to qualify. This applies to assets purchased from 7:30pm on the 12th May 2015 to 30th June 2017.
If you operate through a company and you are a small business the company tax rate shall drop to 28.5%. For those businesses that don't operate through a company you will be entitled to a 5% discount on your tax payable up to a maximum of $1,000.
Motor Vehicle Expenses
This will be made simpler. The 12% cost price and one third of actual expenses methods are to be removed. The "cents per kilometre method" will be streamlined. Gone are the 3 tiers of rates and there will be a standard claim of 66 cents per KM. These measures will be in place for the 2015/2016 year.
You'll now be able to claim your start up costs as a tax deduction instead of spreading the claim over 5 years. This covers professional, legal & accounting fees paid in the start up of a business and takes affect from 1 July 2015.
Expats living overseas who have a Higher Education Loan Programme Debt will now have repayment obligations from 1 July 2017.
- If you get it wrong, Penalties are going to increase from a minimum of $170 to $180.
- Parental Leave will be tightened up so that new parents don't "double dip' from their employer and from the government.
- Changes to Child Care will see families being entitled to rebates of up to 85%
- Changes to the Asset Test thresholds for the Aged Pension. Some pensions will be winners with the minimum assets increasing from $202,000 to $250,000 for a single (from $286,500 to $375,000 for a couple)
- Medicare Levy low income thresholds have increased for individuals and for families.
- Research & Development now has a $100m expenditure cap.
- Australian Defence Force personnel deployed overseas will now receive a full income tax exemption.
- 'Fly-in Fly-Out' or "Drive-in Drive-Out' workers will now no longer be eligible for Zone Rebates
- Accelerated depreciation for our farmers
- The Large Family Supplement of Family Tax Benefits Part A will cease from 1 July 2016.
Like any Budget there will always be winners and losers. So if you'd like to know more, and more importantly how it will affect you...then give us a call on 03 5995 3466.