Area  Changes Effective from
Small Business The tax rate for a company that satisfies the small business test* will be reduced from 30% to 28.5%

 

1 July 2015
Small Business The franking credit rate for small business will remain as 30%.

 

1 July 2015
Small Business A 5% tax discount is introduced for individual taxpayers with business income from an unincorporated business if it satisfies the small business test. This discount is capped at $1,000.

 

1 July 2015
Small Business Small business will be able to claim an immediate deduction for assets costing less than $20,000 where the asset is acquired and installed ready for use between 7.30 pm on 12 May 2015 and 30 June 2017.

 

7.30 pm on
12 May 2015
Small Business Small business owners will be able to change the legal structure of their business without incurring a liability to CGT.

 

1 July 2016
Deductions Start ups will be able to claim immediate deductions for professional expenses incurred with respect to establishing a company, trust or partnership.

 

1 July 2015
Deductions There will only 2 (previously 4) methods of calculating work-related car expense deductions. The remaining two are the log book method and the cents per km methods. The ‘cents per kilometre method’ will have a single rate of 66 per cent per kilometre, irrespective of the engine size. A log book will be required if more than 5,000 km of business travel is being claimed.

 

1 July 2015
Personal HELP debtors residing overseas for six months or more will be required to make repayments of their HELP debt if their worldwide income exceeds the minimum repayment threshold at the same repayment rates as debtors in Australia.

 

1 July 2016
Residency From 1 July 2016, temporary working holiday makers will be treated as non-residents for tax purposes and  will pay 32.5% tax on every dollar.

 

1 July 2016
Primary Producers Primary producers will be able to claim accelerated depreciation for water facilities, fodder storage and fencing.

 

1 July 2016
FBT An exemption is available for small business employers who provide employees with multiple portable electronic devices provided that the electronic device is used primarily for work-related purposes

 

1 April 2016
FBT A separate, single gross-up cap of $5,000 will be introduced for salary sacrificed meal entertainment benefit for not-for-profit employers

 

1 April 2016
Superannuation At present, terminally ill patients must present certificates from two doctors saying that they have less than a year to live – this time period will be extended to two years.

 

1 July 2015
Transfer Pricing The OECD’s new transfer pricing documentation standards will be implemented

 

1 January 2016

Note*: a small business, for the proposed changes, is a business with aggregated annual turnover of less than $2m.

For any queries regarding the taxation aspects of the Budget please contact Steve Fitzsimons on 02 9232 5111 or Steve.Fitzsimons@hr-ss.com.au