Small planning practices get tax benefit
In a move which will benefit some small financial planning practices, the Government has announced that from 1 July, small companies with an annual turnover of less than $2 million will have their tax rate lowered from 30 per cent to 28 per cent.
As well, the Federal Treasurer, Joe Hockey has said that, with immediate effect, small businesses will be able to claim an immediate tax deduction for each item they purchase up to $20,000, something he said would instantly reduce their tax liability.
Announcing the measure in his Budget speech, Hockey claimed that the measure represented the introduction of the lowest small business company tax rate in almost 50 years.
“Most small businesses are not run as companies. So we will also give an annual five per cent tax discount of up to $1,000 a year for unincorporated businesses,” he said.
The Treasurer claimed that the measure allowing an immediate tax deduction for small businesses on items up to $20,000 would benefit the 96 per cent of Australian businesses.
“This will be of enormous benefit to their bottom line and help businesses with their cash flow,” he said.
Recommended for you
Government has introduced a bill to Parliament to legislate the first stream of the QAR reforms.
ASIC now has a 1:1 ratio when it comes to court success in the enforcement of crypto activities and more action is expected as Treasury seeks to introduce a regulatory framework.
A leading governance body has hit out at “specialist interest groups proposing ad hoc law reform” when it comes to reforms of financial services legislation and believes an independent body is needed.
The release of ALRC’s final report into financial services legislation has highlighted financial advice as a “significant” focus as it seeks to reduce costs and help advisers understand their obligations, alongside the Quality of Advice Review.
