This article is published by Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
Federal Budget 2018: Tax (Business)
Federal Budget 2018 Initiatives: Tax (business)
Small Business instant asset write-off extended
Effective 1 July 2018
Until 30 June 2019, small businesses with aggregated annual turnover of less than $10 million may continue to immediately deduct purchases of eligible assets costing less than $20,000. The assets must be first used or installed ready for use by 30 June 2019.
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool (the pool). Which will have them depreciated at 15 per cent in the first financial year and 30 per cent each financial year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools).
The current simplified depreciation rules ‘lock out’ laws which prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out, will continue to be suspended until 30 June 2019.
CGT concession integrity measure introduced
Effective 8 May 2018
A tax integrity measure has been introduced to partnerships that are eligible for the small business CGT concessions and who alienate their income by creating, assigning or otherwise dealing in rights to the future income of a partnership. The initiative is designed to stop small business taxpayers, including large partnerships, from accessing the concessions in relation to their assignment of a right to the future income of a partnership to an entity, without giving that entity any role in the partnership.
There are no changes to the small business CGT concessions themselves.
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