This year’s Federal Budget included a few key changes for business owners. Here’s what you need to know.
The instant asset write-off for small businesses has been extended to 30 June 2019. If you purchase an asset that costs less than $20,000, you can write off the business portion in your 2018/19 tax return.
You can do this if:
Assets you can write off include:
The Government has streamlined the GST reporting requirements for small businesses. The number of BAS GST questions has been reduced to three, scrapping the 20-question worksheet.
From 1 July 2018, low and middle income earners will receive a tax cut of up to $530 per year. This is step one in the Government’s three-step plan to flatten the tax system and ensure 94% of taxpayers pay a marginal rate of 32.5% or less by 2024.
Employers will need to use updated tax tables to ensure they are paying employees at the correct rate.
The Government is cracking down on small businesses taking advantage of the black economy, such as failing to record cash sales to customers and not deducting PAYG tax on payments to contractors and employees.
Key measures include:
To protect businesses from illegal phoenixing, the Government has proposed changes to corporations and tax laws to provide regulators with the tools they need to disrupt illegal phoenix activity.
Illegal phoenixing is when a new company is created to continue the business of a company that has been deliberately liquidated to avoid paying its debts. The impact on the economy is enormous. In 2012, the Fair Work Ombudsman and PricewaterhouseCoopers estimated the cost of illegal phoenix activity to be as much as $3.2 billion each year.
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