Mining Tax repeal on hold
With the Mining Tax repeal on hold, small business owners are in limbo about what they can and can't claim on their tax returns.
The Mining Tax and related bills were not passed prior to the end of the Winter Sitting of Parliament. While it has been something of a spectator sport to see the workings of the new Senate in practice, the winter break has left taxpayers and their advisors in limbo.
Many small businesses will be working with their accountants now to prepare their tax returns. Under current legislation, many qualify for deductions for assets purchased from 1 January 2014 however if the Government is successful in removing the mining tax, then SMEs will no longer qualify for:
- The loss carry-back rules for companies
- Slowing of the superannuation guarantee increase
- The $5000 instant motor vehicle deduction for small business and
- The generous instant asset write off threshold for small business
As discussed previously, the ATO has confirmed that tax returns can be prepared and lodged based on the current law, however, if the amendments are passed by Parliament it will be necessary to amend affected tax returns.
Please contact your Client Manager on 02 9957 4033 if you are unsure of how these changes could affect your tax return.
Follow Bates Cosgrave on Linkedin
Last updated 21 August 2014. This article is provided for information purposes only and should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.
This article is provided for information purposes only and correct at the time of publication. It should not be used in place of advice from your accountant. Please contact us on 02 9957 4033 to discuss your specific circumstances.