Morrison and the Federal Budget: Business Tax Accounting Services You May Need
Tax accounting services
The Australian Federal Budget 2019/20 outlines economic policies that will hopefully drive a stronger economy. As a business owner, you may need to seek consultation and business tax accounting services to better understand the Budget’s business tax measures such as the expansion of instant asset write-off rules for small and medium businesses, reduction of superannuation fund red-tape and merging fund tax relief, among others.
Personal tax reform includes new reductions for low income taxpayers and super member contribution improvements for the elderly. Other personal tax cuts include lower taxes for “hard-working Australians” and improvement in high personal marginal tax rates.
Key changes in the Budget affect local and international businesses, financial services and real estate, superannuation, personal and indirect taxes. The instant asset write-off threshold will increase from $25,000 to $30,000 for businesses that have an aggregated annual turnover of $50 million or less. The new rules apply to first used or installed asset purchases from 2 April 2019 until 30 June 2020.
Depreciation pool measures still apply where purchased assets do not meet the above conditions. Businesses with less than $10 million turnover should take note of the different rules from 29 January, between 20 January and 1 April, and from 2 April. To fully take advantage of available tax cuts for you, it would be best to seek tax accounting services from a reputable business accounting firm.
Several minor changes to hybrid mismatch rules have also been proposed such as clarifying rules applied to MEC groups and trusts, limiting foreign tax to exclude sub-national taxes and clarifying the integrity rule coverage. The ATO has a $1 billion budget over four years to extend the Tax Avoidance Taskforce starting 2019/20, targeting large public and private groups, multinationals and high wealth individuals.
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There’s no mention of the Research and Development tax incentive which has yet to pass into law. The Information Exchange Countries list will add several countries on 1 July 2020, which would decrease withholding tax rates of distribution from management investment trusts to these countries from 30% to 15%.
For more information about the Federal Budget 2019-20, seek consultation and business tax accounting services. As you look for different ways to grow and improve your business, seeking professional advice from a business accountant and consultant could prove to be an important and helpful decision.
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