Budget-hook.pngBudget 2015  - “Have A Go!”

The budget handed down by the Federal Government has resonated way more positively with voters than the last one they tried to sell.

Rather than go into lots of detail here, we’ve decided to keep it brief and if there’s anything you’d like to know more about or discuss then make sure you contact us. We’ll be happy to assist.

The Highlights

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. Revenue measures target the asset or income rich, or just plain unpopular.

Accelerated depreciation across multiple areas

  • Micro business - immediate deductibility from Budget night for any assets purchased and used or installed and 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
  • Farmers – immediate deductibility for fencing and water facilities

Tax cuts for small business (under $2m) from 1 July 2015

  • 1.5% company tax reduction
  • 5% tax discount for unincorporated small businesses

GST on digital supplies

  • 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

  • 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

FBT changes

  • Changes to salary sacrificed meal entertainment for not for profits
  • Expansion of FBT exemption for work related electronic devices provided by small businesses

Multinationals targeted

  • Changes to Part IVA target around 30 global companies with revenue in excess of $1bn

Accessing government benefits

  • Changes to how superannuants’ income counted for social security
  • Child care shake up - Collapses three current eligibility tests with one means and activity test
  • Asset test changes mean 91,000 pensioners no longer qualify and 235,000 will have pension reduced
  • ‘Double dipping’ Government and employer paid parental leave stopped

 

Source: Knowledge Shop Budget Report 2015