Small Business Accounting Canberra and your 2016 Tax Return
In last night’s budget the Federal Government announced a number of key tax changes affecting small and medium businesses on their 2016 Tax Return. If you are one of the approximately 16,300 small business owners in Canberra with an annual turnover of less than $2 million the proposed changes will have significant cash flow implications for your business.
The key proposed changes affecting small business include:
- the $20,000 immediate asset deductibility for incorporated small businesses from the budget to 30 June 2017.
- a reduction of tax rates of 1.5% to 28.5% for incorporated small businesses.
- unincorporated small businesses receive a 5% tax discount on income delivered as a tax offset delivered through an individual’s tax return.
These measures will apply to businesses with annual turnover of $2 million or less. These changes are expected to be most greatly affect the following sectors:
- residential construction;
- real estate;
- computer system design and ICT;
- cafes and restaurants; and
- small professional services businesses.
In addition the Commonwealth has made changes to the capital gains treatment of small business owners who change the legal structure of their business.
For more information on the $20,000 immediate asset deduction for small business go to: https://www.ato.gov.au/Media-centre/Media-releases/ATO-issues-advice-on-$20,000-immediate-asset-deductibility-for-small-business/
For more information on the broad range of measures affecting small business go to: http://www.budget.gov.au/2015-16/content/highlights/jobsandsmallbusiness.html
Small business owners will need to keep an eye out on legislative changes as the legislation giving effect to these changes has not been enacted.
At MAS Tax Small Business Accounting Canberra we keep up to date with the latest tax rules so we can help you get the best tax return canberra possible. We are experts in providing a full range of Canberra Tax services to individuals and small business owners.
For more information or to schedule an appointment, please contact us below or call us on 1300 627 829
