Federal Budget 2015/2016 – The ‘have a go’ Budget
by Mark Stewart, Director – Integrity Wealth
This is a highly targeted Budget that seeks to keep change within community tolerance levels.
Most spending measures target productivity gains – although small businesses with turnover between $2m and $5m will be disappointed.
Whilst the measures announced will represent opportunities for small business, it is always recommended to act with caution until:
- It becomes clearer which measures will pass through the parliament and become law;
- The finer details of the announcements are analysed and understood; and
- Business is certain they are committing to expenditure for the right reasons.
Summarised below are the key announcements made and the proposed dates when each will take effect. Next month, after more detailed consideration, we will highlight practical strategies and implications that small business need to be thinking about this financial year and beyond.
Some of the key changes announced include:
Accelerated depreciation across multiple areas
- Micro business – immediate deductibility from Budget night for any assets purchased and used or purchased and installed ready to use by 30 June 2017 that cost less than $20,000
- Start-ups – immediate deductibility for professional expenses – cost of lawyers and accountants to get a business up and running (from 1 July 2015)
- Farmers – immediate deductibility for fencing and water facilities (from 1 July 2016)
Tax cuts for small business (under $2m turnover) from 1 July 2015
- 5% company tax reduction
- 5% tax discount for unincorporated small businesses
GST on digital supplies (from 1 July 2017)
- Similar GST treatment applied to supplies of digital products to Australian consumers – including consulting and professional services – regardless of whether they are supplied by a local or foreign supplier
Individuals (from 1 July 2015)
- Changes to work related deductions for car expenses – 12% of original value and one third of actual cost methods removed and simplification of cents per kilometre method
- Changes to salary sacrificed meal entertainment for not for profits (from 1 April 2016)
- Expansion of FBT exemption for work related electronic devices provided by small businesses ( from 1 April 2016)
Accessing government benefits
- Changes to how superannuants’ income counted for social security (from 1 July 2016)
- Child care shake up – Collapses three current eligibility tests with one means and activity test (from 1 July 2017)
- Asset test changes mean 91,000 pensioners no longer qualify and 235,000 will have pension reduced (from 1 January 2017)
- ‘Double dipping’ Government and employer paid parental leave stopped (from 1 July 2016)
Should you have any questions regarding this article, and wish to find out more information, please contact the author;
Mark Stewart, Director of Integrity Wealth
Ph: 1300 780 818 or email firstname.lastname@example.org
The information contained herein is provided on the understanding that it neither represents nor is intended to be advice or that the authors or distributor is engaged in rendering legal or professional advice. Whilst every care has been taken in its preparation no person should act specifically on the basis of the material contained herein. If assistance is required, professional advice should be obtained.
Integrity Wealth is an independent business and in making this referral, we do not advise on the products and services Integrity Wealth may provide to you, nor do we represent that Integrity Wealth products and services are right for you. You need to make your own decision based on the information Integrity Wealth provides.