Did you know that the Australian Taxation Office (ATO) is implementing tax changes this year?
Whether you’re a small business, an enterprise, or an individual taxpayer, these changes apply to you. But don’t worry, there’s still time to learn about them and find out how they could affect you.
Here are some of the tax changes you should know.
For Small Businesses and Enterprises
- Immediate Asset Write-Off — If you have a turnover of less than $10 million and assets worth $30,000 or less, you could now claim a deduction for every asset installed or used within the following threshold:
- Before January 29, 2019, for assets worth less than $20,000
- From January 29, 2019, until 7:30 pm (AEDT) of April 2, 2019, for assets worth less than $25,000
- From 7:30 pm (AEDT) of April 2, 2019, until June 30, 2020, for assets worth less than $30,000
- On July 1, 2020, the threshold for assets will return to $1,000
- The general rules for depreciation would continue to apply for assets that cost more than $30,000
- Starting April 2, 2019, small businesses with a turnover of anywhere between $10 million and less than $50 million would also enjoy an immediate write-off for their assets.
- Tax offset for small businesses has increased to 13% for the 2020-2021 tax year. The offset will further increase to 16% for the tax year 2021-2022.
- Base rate entities (or companies with a turnover of less than $50 million) now have a 26% tax rate for the 2020-2021 tax year. Their tax rate was previously at 27.5%. For the tax year 2021-2022, the tax rate will further be reduced to 25%.
For Individual Taxpayers
- Foreign investors with properties acquired before May 9, 2017, may claim the Capital Gains Tax (CGT) main residence exemption if the disposal of the property happened before June 30, 2020.
- Foreign investors who acquired properties on or after May 9, 2017, are no longer qualified for the CGT main residence exemption.
- The Personal Income Tax Plan has been expanded as announced in the 2019-2020 Budget. From $530 per year, the Low and Middle Income Tax Offset (LMITO) is now $1,080 annually. Furthermore, the base amount was also changed from $200 to $255.
Are you still confused about these changes? Glance Consultants can walk you through them and provide sound taxation advice. Please send an email to email@example.com or give us a call at 03 9885 9793 for a confidential discussion of your needs.