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Proposed tax changes for 2014

The Government’s plan to abolish a number of tax measures could cost individuals and businesses several thousands of dollars.

It is important to be aware of these potential changes as decisions pre and post 1 January 2014 could have serious implications.

Below are some of the potential changes, however, take note that these changes are still yet to become law:

Reduction in instant asset write-off threshold

Small business (generally those with a turnover of less than $2 million) can currently claim an immediate deduction for depreciating assets costing less than $6,500.  From 1 January 2014, this threshold will drop to $1000.

$5000 deduction for motor vehicles scrapped

From 1 January 2014, the $5000 immediate deduction for motor vehicles purchased by small businesses will be removed.  If businesses are considering purchasing a motor vehicle they have until 31 December 2013 to be able to claim the deduction.

Loss carry back measures

The loss carry back measures allows companies to offset tax they have paid in the previous years against current year losses.  The repeal of this measure will mean that companies will only be able to use the loss carry back measures for the 2013 income year.

Posted on 13 December '13 by , under Tax.

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What to consider when consolidating your super

The ATO reported that 45% of working Australians were not aware that they had multiple super accounts in 2016. Having multiple super accounts is particularly common for individuals who have had more than one job. If this is you, it is important to identify and manage your super accounts because having more than one can be costly as a result of account fees from multiple funds.To combat this, you may want to consolidate your super, which moves all your super into one account. Not only does this save on fees, but it also makes your super easier to manage and keep track of.

Before consolidating your super, it is important to do the following:

Research your funds' policy
Compare your active super accounts so you can make the right choice about which one you should close. Things to assess include:

  • Exit fees
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  • Investment options
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  • Performance of the funds

Check employer contributions
Changing funds may affect how much your employer contributes, as some employers contribute more to certain funds. Check your current accounts to see if changing funds will affect this. Once you have selected a super fund, regardless of whether you choose a new super fund or one of your existing ones, provide your employer with the details they need to pay super into your selected account.

Gather the relevant information
When consolidating your super, you will need to have the following details ready:

  • Your tax file number.
  • Proof of identity. This could include your driver's license, birth certificate or passport.
  • Your fund's superannuation product identification number (SPIN).
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  • Details of your previous fund.

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