Federal Budget 2015

What's in this years Federal Budget for me?

For those in business the big news is the immediate write-off of assets that cost less than $20,000. You must be a small business with an aggregate annual turnover of less than $2 million to qualify. This applies to assets purchased from 7:30pm on the 12th May 2015 to 30th June 2017.

If you operate through a company and you are a small business the company tax rate shall drop to 28.5%. For those businesses that don't operate through a company you will be entitled to a 5% discount on your tax payable up to a maximum of $1,000.

Motor Vehicle Expenses

This will be made simpler. The 12% cost price and one third of actual expenses methods are to be removed. The "cents per kilometre method" will be streamlined. Gone are the 3 tiers of rates and there will be a standard claim of 66 cents per KM. These measures will be in place for the 2015/2016 year.

Startups

You'll now be able to claim your start up costs as a tax deduction instead of spreading the claim over 5 years. This covers professional, legal & accounting fees paid in the start up of a business and takes affect from 1 July 2015.

HELP Debts

Expats living overseas who have a Higher Education Loan Programme Debt will now have repayment obligations from 1 July 2017.

Other Measures

1. If you get it wrong, Penalties are going to increase from a minimum of $170 to $180.
2. Parental Leave will be tightened up so that new parents don't "double dip' from their employer and from the government.
3. Changes to Child Care will see families being entitled to rebates of up to 85%
4. Changes to the Asset Test thresholds for the Aged Pension. Some pensions will be winners with the minimum assets increasing from $202,000 to $250,000 for a single (from $286,500 to $375,000 for a couple)
5. Medicare Levy low income thresholds have increased for individuals and for families.
6. Research & Development now has a $100m expenditure cap.
7. Australian Defence Force personnel deployed overseas will now receive a full income tax exemption.
8. 'Fly-in Fly-Out' or "Drive-in Drive-Out' workers will now no longer be eligible for Zone Rebates
9. Accelerated depreciation for our farmers
10. The Large Family Supplement of Family Tax Benefits Part A will cease from 1 July 2016.

Like any Budget there will always be winners and losers. So if you'd like to know more, and more importantly how it will affect you...then give us a call on 03 5995 3466.