It is important to pay close attention to recent tax changes that have come about as part of the new financial year – please take a quick look at this list and have a think about whether any of these changes may affect you or your company.
If you do feel that one or more of the below changes will change the way that you handle your finances; please don’t hesitate to get in touch with Fortis Accounting Partners on (o2) 9267 0108, or via email at info@exemplary-financial.flywheelsites.com.
- GST applies to digital products & services imported by consumers.
- Small business $20k instant asset write-off extended until 30 June 2018.
- Company tax rate reduction to 27.5% for entities with an aggregated turnover of less than $25m (companies with a turnover of less than $10m have been subject to this tax rate since 1 July 2016).
- Major Bank Levy introduced.
- 2% temporary debt tax removed from high income earners.
- Plant & equipment deductions limited for residential property investors (not yet legislated).
- Residential property investors no longer able to claim travel expenses (not yet legislated).
- First home saver scheme begins (not yet legislated).
Superannuation reforms come into effect:
- Cap on concessional contributions (before tax) reduces to $25,000 for everyone.
- Cap on non-concessional contributions (after tax) reduces to $100,000.
- $1.6 million transfer balance cap limits how much money a member can transfer into or hold in a tax-free pension account. Excess amounts are subject to a transfer balance tax.
- Threshold to access the tax offset for contributions to a spouse increased to $37,000 (partial offset available up to $40,000).
- Threshold for low income super tax offset increased to $37,000.
- The threshold at which high-income earners pay Division 293 tax on their concessionally taxed superannuation contributions reduced to $250,000 (from 300,000).
