Federal Budget 2015.

The Abbott government handed down its budget for 2015-16 last night

Many key Budget announcements that comprised the Government’s small business package were announced (or “leaked!”) pre-Budget and confirmed in the Budget papers. These include:

Accelerated depreciation across multiple areas

  • Micro business – immediate deductibility from Budget night for any assets purchased and used or installed and ready to use by 30 June 2017 that cost less than $20,000
  • Start ups – immediate deductibility for professional expenses – cost of lawyers and accountants to get a business up and running
  • Farmers – immediate deductibility for fencing and water facilities

Tax cuts for small business (under $2m) from 1 July 2015

  • 1.5% company tax reduction
  • 5% tax discount for unincorporated small businesses

 GST on digital supplies

  • Similar GST treatment applied to supplies of digital products to Australian consumers –  including consulting and professional services – regardless of whether they are supplied by a local or foreign supplier

 Individuals

  • Changes to work related deductions for car expenses – 12% of original value and one third of actual cost methods removed and simplification of cents per kilometre method

 FBT changes

  • Changes to salary sacrificed meal entertainment for not for profits
  • Expansion of FBT exemption for work related electronic devices provided by small businesses

 Multinationals targeted

  • Changes to Part IVA target around 30 global companies with revenue in excess of $1bn

 Accessing government benefits

  • Changes to how superannuants’ income counted for social security
  • Child care shake up – Collapses three current eligibility tests with one means and activity test
  • Asset test changes mean 91,000 pensioners no longer qualify and 235,000 will have pension reduced
  • ‘Double dipping’ Government and employer paid parental leave stopped
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