Happy New Financial Year from everyone at Focus Professional Group!
Welcome to 2018!
Here are some changes that may affect you.
Residential Individual Tax Rates
The following rates for 2016-17 & 2017-18 years apply from 1 July 2016:
The compulsory superannuation guarantee rate will remain on hold for the 2016-17 & 2017-18 financial years at 9.5% of ordinary times earnings for all employees.
- Medicare Levy of 2%
- Temporary Budget Repair Levy; (2% x taxable income if over $180,000) until 30 June 2017
Are you a Small Business?
A Small Business is defined by the Australian Taxation Office (ATO) as having an annual aggregated turnover of less that $10 million from 1 July 2016 (increased from $2 million).
If this applies to you, there is some relief…
Small Business Income Tax Offset (Individuals, Trusts & Partnerships)
The small business income tax offset is a non-refundable offset that may reduce the Tax Payable up to $1,000. We will apply the offset if you are eligible.
Changes to Small Businesses for 2016-17 year
- Reduced company tax rate of 27.5% from 30%
- Imputation Credit Rate for any dividends paid from 1 July 2016 has reduced in line with the company tax rate from 30% to 27.5%
- The $20,000 immediate asset tax write-off is being extended for another year to 30 June 2018
Simplified Business Activity Statement (BAS) Reporting Requirements
The simplified BAS will reduce the amount of GST information required for reporting requirements.
Changes to Investment Property Tax Deductions
- Travel Deductions - Investors will no longer be able to claim a tax deduction on any travel to their investment property from 1 July 2017.
- Depreciation - Investors purchasing Plant & Equipment after 9 May 2017 can claim depreciation over the effective life of the asset. Subsequent owners are no longer eligible to claim depreciation on purchases made by a previous owner.
- Capital Works - There are no changes to capital works deductions on the write off of a building structure.
UPCOMING ATO DUE DATES