The Federal Budget has delivered some good news for business owners wanting to continue investing in assets to improve business profitability.
The Government has extended the current instant asset write-off ($20,000 threshold) for small business entities (SBEs) by another year to 30 June 2018. This is expected to encourage small businesses to invest more in plant and equipment.
Further, The SBE turnover threshold has also been raised from $2m to $10m. As part of the budget, the Government also looks committed to its 10-year Enterprise Tax Plan to eventually reduce the company tax rate to 25% for all companies. For 2017 year, small businesses with an aggregate turnover under $10m, a reduced corporate tax rate of 27.5% will apply which shall be extended for 2018 year for businesses with turnover up to $25m.
The budget, however, has expressed concerns over small businesses accessing CGT concessions for assets which are unrelated to the business. The Government will amend the small business CGT concessions to ensure that the same is accessed in relation to assets used only in a small business and as per the ownership interests.
Feel free to approach us for an expert advice and how these changes affect your business.
For further assistance, please contact Taxplanners on 1300 000 TAX (1300 000 829), 03 9600 0143 (10 Lines).
You can also visit our office for assistance –
Melbourne CBD – Suite 411-413, Level 4, 343 Little Collins Street, Melbourne
Werribee Office – 88 Watton Street, Werribee, Contact – 03 901 MY TAX (03 9016 9829)