Federal Budget 2017: Tax (businesses)

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June 1, 2022
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Please note that each of these proposals will only become law if it is passed by Parliament.- Extension of the deductibility threshold for small businesses- New levy for major banks

Extension of the deductibility threshold for small businesses

The government will extend the existing accelerated depreciation allowance for small businesses by 12 months to 30 June 2018.What this could mean for youIf your small business has aggregated annual turnover below $10 million, you’ll be able to immediately deduct the purchase of eligible assets costing less than $20,000 where they are first used or installed ready for use by 30 June 2018. After that date, the immediate deductibility threshold will revert back to $1,000.

New levy for major banks

A major bank levy will be introduced for authorised deposit taking institutions (ADIs) with licensed entity liabilities of at least $100 billion (indexed to Gross Domestic Product (GDP)). The levy will apply to client deposits and equate to an annualised rate of 0.06{89774503f1dc5a8067a215bf11c503ad6eecdd9fbdfb7beae4875fba6258e357} – for example, the levy on a bank deposit of $500,000 will be approximately $300 pa. Superannuation funds and insurance companies won’t be subject to the levy.What this could mean for youIt’s unclear at this stage how the levy will be implemented, and what the impacts might be on customers and shareholders.This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.

June 1, 2022

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