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Back in July we reported that the Federal Senate had passed the Carbon Tax Repeal legislation in our article Carbon Tax Gone, Mining Tax (almost) Gone, Thin Capitalisation changes introduced. As you may now have heard, the Mining Tax (Minerals Resource Rent Tax) has been repealed.

But what does that means for individuals and small business?  We highlight below the key changes we expect will affect our clients.

Back in July we reported that the Federal Senate had passed the Carbon Tax Repeal legislation in our article  Carbon Tax Gone, Mining Tax (almost) Gone, Thin Capitalisation changes introduced.. As you may now have heard, the Mining Tax (Minerals Resource Rent Tax) has been repealed.

But what does that means for individuals and small business?  We highlight below the key changes we expect will affect our clients.

The Repeal Act also made changes to other tax measures to help 'balance' the revenue.  The Act reversed certain measures that were introduced when the mining tax was introduced.

Business

From 1 July 2013 (affecting the 2014 tax return), the loss carry back rules have been repealed.  This means that companies can no longer claim a tax offset for losses made in earlier years.  The small business depreciation rules (affecting businesses with < $2 Million turnover) have changed from 1 January 2014.  This creates two sets of rules to deal with for the 2014 tax return.

  • 1 July – 31 December 2013 – Any assets purchased costing less than $6,500 can be claimed as a 100% deduction, plus the first $5,000 of the cost of a car can be claimed.
  • 1 January – 30 June 2014 (and in future) – Any assets purchased costing less than $1,000 can be claimed as a 100% deduction.  There is no up front deduction for a car.

Individuals

  • Income Support Bonus will continue until 31 December 2016 and then be repealed.
  • Schoolkids Bonus will continue until 31 December 2016, but a means test will be applied, so that only families on incomes of up to $100,000 per annum would qualify.
  • The Low Income Super Contribution will continue until 30 June 2017 and then be repealed.
  • The increase in the compulsory superannuation rate from its current 9.5% will be delayed until 2021 when it will increase to 10% and by 0.5% per year from 1 July 2022 until it reaches 12% for the year beginning 1 July 2025.

 

Please speak with your usual Hanrick Curran adviser if you have any queries about the impact of these changes on your personal circumstances.