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Snapshot of the ALP Key Tax Policies

Post Coalition Federal Election win 2019

Now that the Federal Election has been won by the Coalition, our combined focus needs to be on how you can save tax before 30 June 2019!

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 business owners and individual taxpayers in the short term.

Lodgement rates and thresholds guide

Single Touch Payroll

Single Touch Payroll (STP) is changing the way employers report their tax and super information to the ATO.  If you have payroll software, all you'll need to do is update it once it has been 'single touch payroll' enabled.

You will then begin reporting the following:

  • payments to employees such as salary and wages
  • pay as you go (PAYG) withholding
  • super information

The way you pay your employees won't change however you must send the ATO the information at the same time as you pay your employees.  STP has already started and will be mandatory for all employers from 1 July 2019.

July 2019

  • Penalty Interest can be deductible, under specific conditions.
  • Carried forward concessional super contributions.
  • Business trading structures:  What's best for your business?
  • Event-based reporting mistakes lead to more SMSF audits.
  • Businesses get increased access to losses.

June 2019

  • Records for claiming work-related expenses.
  • Essentials on taxable payments annual reports.
  • ATO actions on Trusts and tax avoidance.
  • Personal deductions for car parking expenses.

May 2019

  • Alternatives to a tax invoice for certain GST credit claims.
  • Can the ATO's public rulings help your outcomes?
  • What you need to know about the beefed-up director penalty regime.
  • Instant Asset Write-off - updated information.
  • Super downsizer scheme essentials.

April 2019

  • The approach to tax when you're working from home.
  • Single Touch Payroll (STP) rollout for smaller employers.
  • The tax deductions available for interest, dividends and other investment income.
  • Deductions for donations.
  • Staff training costs deductible, but beware FBT.

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.

As always, please feel free to give us a call on (07) 54391600 to have a chat.

 

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