• What’s new this year? 2015

    Temporary budget repair levy

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    A temporary budget repair levy of 2% will be calculated on your taxable income that exceeds $180,000. The levy will be calculated using the information provided in your income tax return. If you need to pay the levy it will be shown on your notice of assessment.

    Preventing dividend washing

    The dividend washing integrity rule applies from 1 July 2013. The integrity rule prevents you from claiming franking credits where you have received a dividend as a result of dividend washing.

    Dividend washing occurs where you, or an entity connected to you, claim two sets of franking credits by:

    • selling shares that are held on the Australian Securities Exchange (ASX) and have become ‘ex-dividend’
    • purchasing some substantially identical shares using a special ASX trading market.

    The dividend washing integrity rule does not apply if:

    • you are an individual
    • you received no more than $5,000 in franking credits during 2013–14.

    However, the dividend washing integrity rule applies where dividends flow indirectly to you through your interest in a trust or partnership.

    The Commissioner may also apply the anti-avoidance legislation to deny franking credit benefits to any dividend washing transactions.

    Further information

    Go to ato.gov.au/dividendwashing for more information.

    End of further information

    Expanding accelerated depreciation for small businesses

    In the 2015 budget, the government announced its intention to allow small businesses with an aggregate turnover of less than $2 million to immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000. The small business simplified depreciation pool will apply to assets costing $20,000 or more. These changes will apply to assets acquired and installed ready for use from 7.30pm (AEST) 12 May 2015.

    Attention

    At the time of publishing, these changes had not yet become law. For more information, go to ato.gov.au and search for ‘expanding accelerated depreciation’.

    End of attention
      Last modified: 29 May 2015QC 44109