The TAXAGENT magazine - issue 55 - June 2012

Small business reform measures

Your small business clients may be affected by a number of measures that have recently been passed.

Changes that will apply to small businesses from the 2012-13 income year onwards include:

• An increase in the small business instant asset write-off threshold from $1,000 to $6,500.
• The long-life small business pool and the general small business pool, have been consolidated into a single pool to be written off, at the one rate of 30%. Newly acquired assets are to be deducted at half this pool rate, that is 15% in the year of allocation. They may then be deducted at the general pool rate of 30% in the following years.
• Small businesses can claim an initial deduction of up to $5,000 for motor vehicles costing at least $6,500 acquired in the 2012-13 and subsequent income years. The remainder of the cost is depreciated through the general small business pool at 15% in the first year and 30% in the following years.
• The entrepreneurs tax offset has been abolished from the 2012-13 income year onwards.

For more information about these measures, visit Small business entity concessions - home.

Sections within News

• Lodgment program - a new direction
• Fuel tax credit rate changes from 1 July 2012
• New resource rent tax arrangements from 1 July 2012
• Tax Time 2012 publications available now
• Don't provide BAS services while unregistered
• New reporting requirements for businesses in the building and construction industry
• Paul Clitheroe talks tax avoidance schemes on YouTube
• New instructions to replace TaxPack
• Clean energy Household Assistance Package - changes to personal tax
• End to transitional arrangements for TFN withholding for closely held trusts
• What's new for pre-filling in 2012?
• Pre-filling tips for you
• Small business reform measures
• Spreading the word about electronic refunds
• Latest taxation statistics now available