It’s been a week since budget night and while it’s a mixed bag, for the majority of our business clients there are quite a few wins. Budget night is a funny night; unless you are interested in it – it may sneak up on you unexpectedly but then you certainly know about it the next day. Every newspaper, website and television station are talking about it and it’s quite interesting seeing the varying opinions and thoughts of each demographic affected by the changes.
Here’s my extremely brief overview of the key points from the budget. Our monthly newsletter will go through these in a little more detail and if you would like any further information, please give the office a call.
- Reduction of corporate tax rate for small business entities (SBE) from 30% to 28.5% beginning July 1st. Interestingly the franking rate of 30% will remain unchanged.
- Up front deduction for capital items up to the value of $20,000 for SBE’s. This is an increase from the current value of $1,000. The timeframe for this measure is effective from budget night until 30th June 2017.
- Significant changes to the FBT concessions for not-for-profit and public health employees for various entertainment benefits. Beginning 1st April 2016 a grossed up value limit of $5,000 will be in place.
- SBE’s that are not companies will receive a 5% discount on business income from July 1st up to the value of $1,000 per individual/year.
- Beginning in the 2017 financial year there will be some further capital gains tax concessions available for SBE’s that choose to restructure their business entity.
- Anyone looking to start or add to their family should also review the changes to the parental leave pay system. From 1st July 2016 the government funded system will only be accessibly to those who do not receive any employer funded entitlements. Furthermore, there are some additional child care benefits reforms that will begin in July 2017.
On other internal office news, we welcome Michael Cho to the team. Michael is a fully qualified accountant with over 5 years experience and he and his wife are expecting their first child together in August.