Last year’s budget for small businesses served up the short-term instant asset tax write-off up to $20,000 (increased from the $1,000 threshold).
What is it?
The temporary accelerated depreciation write-off allows Australian small businesses to immediately deduct the business portion of each asset purchased up to $20,000. The rule applies to each individual asset purchased and is designed to encourage small businesses to invest in assets and grow their business.
When can I claim the deduction?
This deduction applies for assets purchased between 7.30pm 12 May 2015 and 30 June 2017. It can be claimed in a tax return, during the year the asset was installed or first used.
What happens on 1 July 2017?
The instant $20,000 asset write-off will revert back to the $1,000 threshold.
Who can claim the deduction?
Small businesses – that is, businesses with an annual turnover of less than $2 million.
Would you like more information?
Due to the Federal Government’s $37 billion budget deficit, paired with declining commodity prices, there has been a lot of talk about changes to tax concessions – particularly in areas of negative gearing, superannuation and the Capital Gains Tax. Read on for a brief summary of the potential changes to tax concessions, depending on the results of Australia’s next Federal election.
Negative Gearing
The Government is looking at putting a cap on the amount of negative gearing deductions that can be claimed per year, or the number of properties each taxpayer can negatively gear.
The Opposition however is looking at making a significant change to the law, meaning that taxpayers would only be able to negatively gear new properties.
Superannuation
It looks as though superannuation changes are likely, with the Government considering a reduction in the concessional contributions cap, and in the non-concessional, after-tax superannuation cap.
In contrast, the Opposition proposes taxing the superannuation pensions of high-earners, and reducing the high-income threshold.
Capital Gains Tax Discount
The Government is looking at reducing the Capital Gains Tax discount that applies to superannuation funds, while the Opposition proposes a reduction to the discount that taxpayers get after they sell a Capital Gains Tax asset.
Lodgement Dates 2016
| REPORTING DATES 2015-2016 for BAS, IAS and SGC | ||
| As per the Australian Taxation Office – for more information www.ato.gov.au | ||
| Lodgement and payment due dates | ||
| If lodging paper copy | If lodging through registered BAS Agent | |
| Quarterly BAS | ||
| Apr – Jun 2015 | 28 July 2015 | 25 August 2015 |
| Jul – Sep 2015 | 28 October 2015 | 25 November 2015 |
| Oct – Dec 2015 | 28 February 2016 | 28 February 2016 |
| Jan – Mar 2016 | 28 April 2016 | 26 May 2016 |
| Apr – Jun 2016 | TBA | TBA |
| Monthly Activity Statement and IAS | ||
| July | 21 August 2015 | 21 August 2015 |
| August | 21 September 2015 | 21 September 2015 |
| September | 21 October 2015 | 21 October 2015 |
| October | 21 November 2015 | 21 November 2015 |
| November | 21 December 2015 | 21 December 2015 |
| December | 21 January 2016 | 21 January 2016 |
| January | 21 February 2016 | 21 February 2016 |
| February | 21 March 2016 | 21 March 2016 |
| March | 21 April 2016 | 21 April 2016 |
| April | 21 May 2016 | 21 May 2016 |
| May | 21 June 2016 | 21 June 2016 |
| June | 21 July 2016 | 21 July 2016 |
| 2015 PAYG withholding payment summary form | ||
| 14th August 2014 | 30 September 2015 | |
| Superannuation Guarantee Contribution – Monthly | ||
| July | 21st August 2015 | |
| August | 21st September 2015 | |
| September | 21st October 2015 | |
| October | 21st November 2015 | |
| November | 21st December 2015 | |
| December | 21st January 2016 | |
| January | 21st February 2016 | |
| February | 21st March 2016 | |
| March | 21st April 2016 | |
| April | 21st May 2016 | |
| May | 21st June 2016 | |
| June | 24th April 2016 | |
| Superannuation Guarantee Contribution – Quarterly | ||
| April – June 2015 | 28th July 2015 (30th June 2015 to be eligible to claim in 2015 income tax return) | |
| July – September 2015 | 28th October 2015 | |
| October – December 2015 | 28th January 2016 | |
| January – March 2016 | 28th April 2016 | |
Bookkeeping practices are undergoing significant change with the introduction and adoption of on-line accounting packages.
Xero is a fully online package where the software and data are all hosted in the cloud. It is only available online. Intuit Quickbooks offers a similar model.
MYOB also offers a cloud accounting package. They have also developed a hybrid package, where the software sits on your laptop or computer, but can be accessed online by various users. The data is synchronised in the cloud. MYOB continues to offer their traditional desktop accounting and bookkeeping packages.
Reckon is developing an online system of modules, where users add or remove modules as required.
All are subscription based, which means you pay a monthly fee to access the software and data. A variety of subscription levels are offered. There are also an ever increasing number of apps available as plugins for the online software which allow the user to customise their bookkeeping system to their own particular needs.
Whether or not the advantages of these online systems represent good value for money, will depend on the individual business. For some businesses, these solutions can represent significant costs and may not be considered cost-effective.
For others, the advantages of live bank feeds, where bank transactions are relayed into your data file on a real time basis, and the flexibility of being able to access your file from any online device at any time the internet is available means the cost is well worth it.
If you would like to discuss what package might be most suitable for your business, please feel free to give Sheree a call on 0402 347 610.