2017/2018 Changes to Small Business Tax Legislation

Posted on July 14, 2017 by ATB Chartered Accountants

Keeping track of changes to company tax laws can be a huge drain on your resources and energy. Our team is constantly working to keep on top of any changes to tax legislation.

ATB Chartered Accountants has compiled a small summary of recent changes for you. Keep in mind that legislation is constantly developing, so it is best to stay in touch with us to ensure you don’t miss a beat.

Increase in depreciation write off

The welcome increase to the depreciation write off threshold from $1,000 to $20,000 has been extended for the duration of the 2018 financial year. The threshold was forecast to drop back down from July 2017, but luckily for you, the ATO has elected to leave it be. There is no limit to how many items can be claimed. This means that you could potentially claim multiple items up to the value of $20,000 each, as long as you can provide evidence of their business purpose.

The change is limited to small businesses only. If you’re planning any sub-$20,000 business purchases and have a turnover of less that $10 million, don’t hesitate to get in contact with us. We can help you sort through the tax technicalities to maximize the value of your capital.

Small Business Tax Legislation

Removal of GST for travellers departing Australia

Another key legislation update is the removal of GST on goods sold to travelers about to depart Australia.

The goods will need to be in a sealed bag, as if you’re heading through duty free and you will need confirmation that the traveler is about to leave Australia.

For more information about your eligibility to sell GST-free goods, feel free to get in touch with one of our expert tax accountants.

Small Business Tax Legislation

Cryptocurrency

With the cryptocurrency craze currently sweeping the world, the ATO has also made an important adjustment to the GST liability on digital currencies. Previously, GST was applied twice on digital currencies used in the course of business. Once on the purchase of the digital currency and again when the currency was used to buy any good or service which is already inclusive of GST.

As of 1 July 2017, purchases of digital currency are no longer subject to GST. This change shifts the treatment of digital currency to be more aligned with normal money. If you’ve used digital currency in accordance with the law prior to the changes, you may be eligible to lodge a request for an amended assessment.

Small Business Tax Legislation

R&D expenses

There’s good news in the realm of research and development too. Small businesses may be able to claim up to $100 million in R&D expenses, including spending on transforming goods or materials during R&D and for the decline in asset value throughout the R&D period. The ATO has integrated this legislation to help facilitate start-up ventures with a focus on technological innovation.

Businesses with an annual revenue of less than $20 million are eligible for a 45% refundable tax offset. If you’re considering a research and development project, we can help you work out how much you’re eligible for.

Small Business Tax Legislation

Tax Accounting Specialists

Tax regulations are complex and intricate in nature, so tackling the task on your own can be overwhelming at the best of times.

To save yourself time and money and to make sure you’re claiming everything you’re legally entitled to on your tax filing, contact us for tax help.