So last night was budget night and instead of being glued to my TV I was sitting in a P and F meeting! To my dismay, when I said “we are missing the budget” – someone else said “we are missing masterchef!” and then when we were leaving I reminded everyone “we are missing finding out about tax cuts!” – people laughed at me. So it turns out I really am a dorky accountant and can’t hide it as well as I thought I could.
There’s been a lot written about the budget and even more shown on television and broadcast on radio last night and this morning so I thought I’d share the top 5 things that I found most interesting:
- The $20k immediate write off for small business entities is here to stay until June 30th 2019. I’ve had a lot of clients asking me about this so while I was fully expecting it to be extended, I did breathe a sigh of relief to hear this one.
- Some self managed superannuation funds will only require auditing every 3 years compared to the current annual audit system. It will be interesting to see how this is rolled out and if the cost of audits increase as a result.
- From July 2019 all tax deductions on vacant land will be denied. The exception will be land held for commercial purposes that passes the carrying on a business test.
- The taxable payments reporting system will be expanded to include security providers, investigation services, road freight transport and computer design and related services. This was initially implemented for the trade and construction industry.
- Tax rate changes……..while they sound good for some individuals as only those earning more than $200k would be the top tax rate – I accidentally worked out how old I would be by the time 2025 rolls around and then felt depressed for the rest of the night.