Budget Announcement - Small Business Tax Offset

Budget Announcement - Small Business Tax Offset for Individual Taxpayers

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With effect from 1 July 2015, individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $2 million will be eligible for a small business tax discount. The discount will be 5% of the income tax payable on the business income received, and will be capped at $1,000 per individual for each income year, and delivered as a tax offset through their end of year tax return.


A person running a business as a sole trader has an annual turnover of $120,000 and taxable income of $50,000. Under the current law, the individual would pay tax of around $8,300 in total. Under the proposed new law, the $8,300 tax bill would be reduced by 5%, or $415. While there is no change in the owner's tax rate, under the new law the individual would pay only $7,885 tax.

Budget Announcement - Immediate changes to depreciation rules for small businesses

The Budget announced that small businesses (aggregate annual turnover less than $2m) would be able to immediately write off assets they start to use or install ready for use, provided the asset costs less than $20,000. [The existing write-off threshold is $1,000.] Eligible assets could include things like cars, vans, kitchen equipment or musical instruments.

Date of effect: This will apply for assets acquired and installed ready for use between 7:30pm (AEST) 12 May 2015 and 30 June 2017.

It should also be remembered that the threshold applies on a per asset basis, so several assets each costing up to $20,000 would qualify for the write-off if installed ready for use before 30 June 2017.

Small businesses can access accelerated depreciation for the majority of capital asset types. Only a small number of assets are not eligible (such as horticultural plants and in-house software). In most cases, specific depreciation rules apply to these assets.

From 1 July 2017, the thresholds for the immediate depreciation of assets will revert back to existing arrangements.

2014 Tax Return Lodgement Date

The lodgement due date is fast approaching. If you believe you may be late submitting your information to us please contact us to arrange a lodgement date extension with the ATO

BAS Due Date

The due date for the March 2015 Quarter is 26th May 2015 when you lodge electronically via your tax agent

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