July Tax Laws Update

Posted on August 1, 2015 by ATB Chartered Accountants

Stay updated with the July Tax Laws Update. This update contains the latest legislative news relating to small business, GST, superannuation and employees.

For any questions or feedback on this update please contact us.

TAX LAWS AMENDMENT (SMALL BUSINESS MEASURES NO.1) BILL 2015

This Bill contains amendments to reduce the company tax rate from 30% to 28.5% for companies that are small business entities with an aggregated turnover of less than $2 million. These changes were announced in the 2015/16 Federal Budget. This Bill of interest is currently before parliament.

TAX LAWS AMENDMENT (SMALL BUSINESS MEASURES NO. 2) BILL 2015

This Bill contains amendments to temporarily increase the threshold (from $1,000 to $20,000) under which certain depreciating assets, costs incurred in relation to depreciating assets and general small business pools can be written off; and to enable primary producers to claim an immediate deduction for capital expenditure on water facilities and fencing assets, and deduct capital expenditure to fodder storage assets over three years. These changes were announced in the 2015/16 Federal Budget. This Bill of interest is currently before parliament.

TAX LAWS AMENDMENT (TAX INTEGRITY: GST AND DIGITAL PRODUCTS) BILL 2015

Also known as the ‘Netflix Tax’, all digital products and services provided to Australian consumers must pay GST regardless of whether or not the service is provided by an Australian or foreign entity. Draft legislation of interest has been introduced.

SUPERANNUATION GUARANTEE (ADMINISTRATION) AMENDMENT BILL 2015

Employers are no longer obligated to offer a choice of superannuation fund to temporary resident employees, or when superannuation funds merge. This Bill of interest is currently before parliament.

TAX AND SUPERANNUATION LAWS AMENDMENT (2015 MEASURES NO.3) BILL 2015

This Bill is to reduce the refundable and non-refundable rates of the tax offset available under the R&D tax incentive for the first $100 million of eligible expenditure by 1.5%. It also abolishes the seafarer tax offset. This Bill of interest is currently before parliament.

TAX AND SUPERANNUATION LAWS AMENDMENT (EMPLOYEE SHARE SCHEMES) BILL 2015

This Bill has been passed without amendment. Broadly, the Bill proposes to improve the taxation of employee share schemes (ESS) by:

  • Reversing some of the changes made in 2009 to the taxing point for rights for employees of all corporate tax entities;
  • Introducing a future taxation concession for employees of certain small start-up companies; and
  • Supporting the ATO to work with industry to develop and approve safe harbour valuation methods and standardised documentation to streamline the process of establishing and maintaining an ESS.

This article is provided as general information only and does not consider your specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of your specific circumstances.