2017 Federal Budget – Business
Posted by Casey May 11, 2017
Business owners were handed a small bonus in the 2017 Budget with the Government extending the $20,000 write off for a further 12 months to the 30th June 2018. However there was very little else to take from the budget.
It was rumoured that the immediate write off period was to be extended if you listened to the media pundit. The fact this is extended for a further 12 months provides those qualifying businesses with some relief. So for any small business (turnover less than $10m), any eligible assets costing $20,000 or less qualifies for 100% write off. Assets above the $20,000 will continue to use the simplified depreciation pool. However the pool balance can also be immediately deducted if the balance is less than $20,000 over this period.
The other major change for small business relates to the capital gains tax concessions. From the 1st July 2017, CGT concessions can only be accessed in relation to assets used in a small business or ownership interests in a small business. Previously, people were able to access these concessions for assets that are unrelated to their small business. This change will prevent this from happening moving forward.
There have also been measures brought in to improve GST collection when purchasing a newly constructed home. From the 1st July 2018, GST for the transaction is to be remitted directly to the ATO by the purchaser as part of settlement. At present, the ATO believe that some builders are not remitting the GST to the ATO having already claimed the credits when constructing. This measure being introduced will prevent this moving forward. However there will be minimal impact on purchasers as a majority user conveyancers who manage the change.
Should you want any further clarification or need to obtain further details, please make an appointment to speak one of our experienced Senior Accountants to talk more about these changes.
The above information has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation or needs. Wards Accounting Group Pty Ltd (ACN 105 280 831) ABN 32 105 280 831 is a Corporate Authorised Representative of Merit Wealth Pty Ltd ABN 89 125 557 002, Australian Financial Services Licence Number 409361