Budget 2018/19: No Tax Deduction for Payments to Contractors
The Coalition will look to deny tax deductions to businesses that pay workers as contractors, when in a legal sense that worker should be an employee. Take a small construction company with 5 workers all setup as contractors. They earn $400k between them. If the ATO does an audit and finds that these workers fit […]
Budget 2018/19: Personal Tax Cuts
The Coalition will look to introduce personal tax cuts in 3 stages: (Now) Increase the 32.5% upper threshold to $90k, and introduce a new tax offset for those on low & middle incomes (2022) Increase the 19% upper threshold to $41k and 32.5% upper threshold to $120k (2024) Increase the 32.5% upper threshold to $200k […]
Budget 2018/19: Greater Requirements on Personal Super Deductions
The Coalition will add further integrity checks to the deductibility of personal superannuation contributions. Last year a change was made to allow anyone to claim a tax deduction for personal superannuation contributions. When you claim a personal deduction, you are obliged to tell your super fund so they can process it correctly and withhold 15% […]
Budget 2018/19: Relaxed Audit Requirements for SMSF’s
The Coalition will reduce the audit requirements for SMSF’s from every year to once every 3 years (for those with good compliance history). It’s a win for SMSF’s!! We await the detail on this, and we expect that there will be greater audit requirements in that one year.
Budget 2018/19: No Change to Medicare Levy
The Coalition will scrap the current planned increase to the Medicare Levy (will remain at 2%). This is a win for all taxpayers. This will represent a saving of $300 per year for someone earning $60k.
Budget 2018/19: Instant Asset W/O Extended
The Coalition will extend for a further year the $20k immediate tax deduction available to small businesses (defined as those with a turnover less than $10 mil) on asset purchases. It was scheduled to end on 30 June 2018, now we have an extra year. We note that this isn’t a “bonus” deduction. It is […]