Changes to Taxation rules for Business taxpayers

The Tax Laws Amendment (Small Business Measures No 1) Bill 2015 and the Tax Laws Amendment (Small Business Measures No 2) Bill 2015 have passed the Senate without amendment and are currently awaiting royal assent.

The Tax Laws Amendment (Small Business Measures No 1) Bill 2015 reduces the company tax rate down to 28.5% from 30% for corporate taxpayers who are SBE’s with aggregated turnover of less than $2m from the 1 July 2015. The corporate tax rate for companies that have an aggregate turnover of greater than $2m remains unchanged at 30%.

 The Tax Laws Amendment (Small Business Measures No 2) Bill 2015 implements the following concessions:

  1. A temporarily increase to the immediate income tax write off threshold for small business entities for the cost of assets from $1,000 to $20,000. The amended threshold of $20,000 applies from 7.30 pm AEST on 12 May 2015 until midnight 30 June 2017. On the 1st July 2017 the immediate write off threshold reduces back to $1,000.
  2. A permanent amendment for primary producers which enables these entities to claim an immediate income tax deduction for expenditure on water facilities and fencing assets which would otherwise be capital in nature and to deduct capital expenditure on fodder storage assets over 3 years. The amendments apply to assets that an entity begins to hold or to expenditure a primary producer taxpayer entity incurs on or after 7.30 pm AEST on 12 May 2015.