Small business to repay tax breaks
Small businesses are to be hit with the costs of tax breaks linked to the repeal of the mining tax, according to the business website Smart Company.
The federal government announced on 9 September 2014 that five tax breaks will be back-dated, including loss carry-back, instant asset write offs and other measures such as accelerated depreciation of motor vehicles.
So how does this affect small businesses?
Many of the measures supported by the Minerals Resource Rent Tax were aimed at supporting small business, including:
- Instant asset write off threshold of $6,500 under simplified depreciation rules from 1 January 2015
- Company loss carry back rules from 1 July 2013
- Accelerated deduction of $5000 for motor vehicles from 1 January 2015
The government has agreed to delay other measures, such as:
- The Low Income Superannuation Contribution, which will be abolished from 1 July 2017
- The Income Support Bonus to be abolished from 31 December 2016; and
- The Schoolkids bonus to be abolished from 31 December 2016, however means test will apply to limit eligibility to families with a taxable income of $100,000 or less.
The ATO has released a statement saying that companies will not be subject to penalties and interest if payments are made within a reasonable time.
Small businesses may now need to amend their 2013-2014 tax returns. Speak to your accountant on 02 9957 4033 for more information on how this will affect your business.
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Last updated September 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.