Sep 19, 2018 / News

Taxation

Top Tax Tips - 19 September 2018

Raft of tax concessions available for entities with turnover of less than $10 million

Small business entities (e.g. companies with a total turnover of less than $10 million) will qualify for the following concessions in the year ending 30 June 2019:

• $20,000 instant asset write-off (i.e. an immediate write-off for depreciable assets costing less than $20,000);
• Access to the small business depreciation pool (i.e. accelerated depreciation rates of 15% or 30%) for depreciable assets costing $20,000 or more;
• Simplified trading stock roles (i.e. not required to do a stocktake if there are no significant variations in stock levels in a year); and
• Shorter amendment period for tax returns (i.e. 2 years instead of 4 years).

Furthermore, such businesses – when lodging their business activity statements (BAS) – will:

• only have to inform the ATO about GST on purchases and total sales (instead of filling in a number of other labels that may not be relevant to the business);
• be able to electronically lodge a nil activity statement with just one click (i.e. without having to fill in each label with a zero); and
• be able to sign the declaration by merely clicking a checkbox (i.e. without having to use AUSkey or myGov credentials).

Note however that access to the small business CGT concessions remain limited to entities with either a total turnover of less than $2 million (i.e. this test is not increased to the $10 million turnover threshold) or total net asset value of less than $6 million.

Furthermore, companies with a turnover of less than $50 million for the 2019 income tax year will be taxed at a rate of 27.5% provided 80% or less of the company’s total assessable income is derived from passive activities (e.g. the receipt of interest, dividends or rent).

Please contact us if your business has a turnover of less than $10 million so that we can discuss in more detail how your business may benefit.

We can help you lodge your tax return 

Broadly, individuals must lodge tax returns if they are Australian residents for tax purposes and they:

• had taxable income of more than $18,200;
• paid tax under the PAYG withholding or instalment system or had tax withheld from payments made to the individual;
• had reportable fringe benefits amounts or employer superannuation contributions on their PAYG payment summary;
• made a loss or claimed a loss from a previous year;
• had exempt foreign employment income but some Australian income;
• are entitled to the private health insurance rebate but did not claim the correct entitlement as a premium reduction; or
• are a liable parent or recipient parent under a child support assessment unless their income was less than $24,535 and they received Australian Government pensions, allowances or payments for the whole of the income year.

Please contact us is you need assistance in lodging your tax returns so that our dedicated professionals can assist you.

How can Nexia Edwards Marshall help you?

For any questions or to discuss any of the above in relation to your personal situation, please contact Grantley Stevens or your Nexia Edwards Marshall Adviser.

The material contained in this publication is for general information purposes only and does not constitute professional advice or recommendation from Nexia Edwards Marshall. Regarding any situation or circumstance, specific professional advice should be sought on any particular matter by contacting your Nexia Edwards Marshall Adviser.