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