2019 Top Tax Changes – Companies & Small Business

  • The lower corporate tax rate of 27.5% applies for qualifying companies that have an aggregated turnover of less than $50 million for 2018/19 and have no more than 80% of their assessable income consisting of “base rate entity passive income”.
  • The definition of a “significant global entity” (SGE) will be expanded, commencing on or after the 1 July 2018.
  • The immediate write off for assets costing less than $20,000 by small business entities was extended to 30 June 2019.
  • Recently announced by Scott Morrison, the instant asset write-off for small businesses will be extended to June 30, 2020 and lifted to cover purchases of up to $25,000. Legislation pending of course..
  • With effect from 8 May 2018, an additional basic condition will apply in relation to the CGT small business concessions where the CGT event involves a partnership interest to prevent the concessions from being available for Everett assignments.
  • From the 19 August 2018, primary produces can claim an immediate deduction for capital expenditure on fodder storage assets.
  • Legislation has been introduced to reform the R&D tax incentive for years starting on or after 1 July 2018.
  • Legislation has been introduced that will amend the calculation of balancing adjustment amounts for R&D assets from 1 July 2018.

Other Changes affecting business owners

  • The ATO will apply penalty relief to inadvertent errors in tax returns and activity statements made by eligible tax payers that are due to failing to take reasonable care or taking taking a position on income tax that is not reasonably arguable from 1 July 2018.
  • Rules on Director penalties and security deposits for tax-related liabilities will be strengthened.
  • The Single Touch Payroll reporting framework started 1 July 2018 for companies with 20+ employees. Legislation is currently before the Senate to extend this to companies of all sizes from July 1, 2019.
  • New fuel tax credit rates are applicable from 1 August 2018.

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