The Master Painter Australia - April 2016 Vol. 1 | Page 26
THE MASTER PAINTER AUSTRALIA
026
Tax Breaks
Tax
Tips
and
Latest
News
you can immediately depreciate, but you need to buy them
between 7.30pm on 12 May 2015 and 30 June 2017.
Reducing red tape
• Fringe Benefits Tax (FBT) changes
From 1 April 2016, you’ll no longer need to pay FBT on
any portable electronic devices that you provide to your
employees for work-related use, such as mobiles, laptops
and tablets. This change applies to all businesses with a
turnover of less than $2 million per year.
Capital Gains Tax (CGT) changes
The Australian Government announced funding for the Jobs
and Small Business package in the 2015-16 Budget.
From July 2016, if your turnover is less than $2 million
per year and you change the legal structure of your small
business, you’ll be able to rollover your CGT liability. This
means you won’t have an immediate CGT liability at the point
when you change entity structure.
The package is designed to help small business to grow and
create jobs.
Reducing compliance costs for small companies
Here’s a rundown on the key features of the package and
what it means for your business.
Tax cuts for small business
If your small business has a turnover of less than $2 million
per year, these tax breaks apply to you.
1.5% tax cut for companies
If your business is a company, you’ll get a tax cut of 1.5% from
1 July 2015. Your new company tax rate will be 28.5%.
Visit the Australian Taxation Office (ATO) website for more on
the company tax cut.
• 5% tax discount for other businesses
If your business is not a company, you’ll get a 5% tax
discount from 1 July 2015. This means the amount of tax
you need to pay on your business income will be reduced
by 5%, capped at $1,000 each year.
Visit the ATO website for more on the tax discount.
• Asset deductions
You’ll be able to immediately depreciate any eligible asset
costing less than $20,000 which you buy from 7.30pm
on 12 May 2015 until 30 June 2017. This means you'll be
able to deduct the assets in the financial year in which
you first use or install the asset. There is no limit on the
number of eligible assets costing less than $20,000 that
The Government will review th