Post Budget Wrap-Up: What's changing on 1 July 2015?
The government unveiled a number of changes as part of its "dull and boring" budget on May 12, 2015.
Many of the measures unveiled as part of the 2015 Federal Budget
are due to take effect from 1 July 2015, which we've summarised below:
- Small business tax cut - 1.5% for companies and 5% tax discount for unincorporated small businesses under $2m (capped at $1,000)*
- Employee share scheme rule changes to make the schemes more attractive particularly to start-ups (covered in our April update)*
- 'Fly in fly out' and 'drive in drive out' (FIFO) workers will be excluded from the Zone Tax Offset (ZTO) where their normal residence is not within a 'zone'*
- Start-ups able to immediately deduct a range of professional expenses required to start up a business – such as professional, legal and accounting advice.*
- The way work related deductions for car expenses are calculated will change. The '12% of original value method' and the 'one-third of actual expenses method' will be removed. The 'cents per kilometre method' will be modernised, replacing the three current engine size rates with one rate set at 66 cents per kilometre to apply for all cars.
- The terminally ill will be able to access super earlier*
- Employers with 20 employees or more must use SuperStream for employee contributions.
- Changes to family tax benefits – income test changes, add on child payment removed, and changes to large family supplement.
* announced change not yet law.
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.