28 May 2019
The federal election is over, and while the Coalition have promised company tax cuts and individual tax cuts, the majority of these are planned for a few years’ time.
Here are 2 key areas that will affect you as a business owner in the short term.
INSTANT ASSET WRITE OFF – UP TO $30,000
If your business has a turnover under $10 million, business assets purchased up to the following threshold amounts (exc. GST) will be immediately deductible:
• $20,000, from 1 July 2018 to 28 January 2019
• $25,000, from 29 January 2019 to 7:30pm 2 April 2019
• $30,000, from 7:30pm 2 April 2019 to 30 June 2019
Depreciating assets valued at more than the above threshold amounts will be depreciated in one pool at a rate of 15% in the first year, and 30% in future years.
If your business has turnover from $10 million to $50 million, business assets purchased up to the following threshold amounts (exc. GST) will be immediately deductible:
• $30,000, from 7:30pm 2 April 2019 to 30 June 2019
You should buy these assets and use them or have them ready for use before 30 June 2019.
HIGHER TAX REFUNDS FROM JULY 2019
Taxpayers look set to pocket tax cuts from July as Scott Morrison plans to recall parliament to pass Budget measures before the end of the financial year. The cuts will be put to the Senate in the first of three stages of reforms under the Coalition’s plan to flatten tax brackets in a move to keep the faith with voters who swung behind it on Saturday.
Under the first stage of the plan, about 4.5 million low and middle income earners will enjoy a doubling of the tax offset to $1,080 a year, which they can claim after lodging their Tax Returns as early as 1 July 2019.
A Tax Offset directly reduces the amount of tax you pay. It can reduce your tax payable to zero, but on its own it can’t get you a refund.
Here is how the new targeted tax offset works:
| Your Taxable Income | New Tax Offset |
| Up to $37,000 | Tax relief of up to $255 |
| $37,001 to $47,999 | Tax relief between $255 to $1,080 |
| $48,000 to $90,000 | Full tax relief of $1,080 |
| $90,000 to $126,000 | Tax relief gradually reduces from $1,080 to Nil |
Contact the team at Shakespeare on 08 9321 2111 if you’d like to discuss how the above may apply to your personal circumstances.
Source: Change GPS Pty Ltd. 2019
General disclaimer: Our firm provides the information on this website for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles on this website are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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