Client Alert! May 2015 So with the marginal tax rate for companies being reduced to 28.5%, and the maximum individual marginal tax rate staying at 49% there may be some tax saving opportunities open to you. Give us a call TODAY to discuss how these changes may impact you. Federal Budget Increased Benefits for Entity Re-structure The government has proposed streamlining the business registration process and announced that business establishment costs will be able to be claimed immediately from 1 July 2016. In addition, small businesses with a turnover of less than $2,000,000 will be able to claim Capital Gains Tax rollover relief to change the legal structure their business operates from. Last week we heard the Treasurer Joe Hockey deliver his second Federal budget, with some key surprises in it, especially for small business. Below is a summary of the key features and how they could affect you! We at Scotts are here to make you smart financial decisions NOW so that you can have a beautiful financial future. One way we do that is through tax planning! If you haven’t met with us yet, NOW is the time to do so and find out how the following key features of the Budget can benefit you personally. So what are the key features… Immediate Deduction for Assets under $20,000 Businesses with a turnover of less than $2,000,000 are able to claim an immediate deduction for most assets costing less than $20,000 from 12 May 2015. This means that capital expenditure made before the end of the financial year will be eligible for this upfront deduction should it fall into the specified criteria. What a great opportunity for those who are thinking about capital expenditure as part of their growth plans! Not only will you receive the immediate tax deduction for expenditure this financial year, the new tax break lasts until 30 June 2017. Call us to TODAY set a growth plan for your business and get the most out this new initiative. What a great incentive for businesses looking to take advantage of the new reduced company tax rate or change their structure for asset protection. Call us to take advantage of this. Simplification of Motor Vehicle Claims The Government has decided to remove the 12% of original value and 1/3 actual expense methods to calculate motor vehicle claims, and have standardised cents per km claims by making it 66c per km regardless of engine capacity. The log book method though remains untouched. These changes may have an impact on the way you claim your Motor Vehicles Expenses. If you would like more information on how you can maximise your deductions under the new rules, get in touch with us TODAY. Changes to Age Pension Eligibility This year’s budget outlined changes to the aged pension eligibility tests. From 1 January 2017 the Government will increase the assets test limit to qualify for a full pension from $286,500 to $375,000 for couples, and from $202,000 to $250,000 for singles. The rate the age pension decreases has also been increased from $1.50 to $3.00 for every $1,000 you are over the threshold, which has reduced the maximum limit to receive a pension to $823,000 for couples and $547,000 for singles. To make sure you are receiving the maximum pension that you are eligible for, call us TODAY to discuss. Tax Savings for Small Businesses The budget delivered some more good news for small businesses with the company tax rate being reduced by 1.5% bringing it down to 28.5% for businesses that turnover less than $2,000,000. And for those of you who do not operate through a company the government will introduce a 5% discount on tax payable on business profits to a maximum of $1,000 per individual. Scotts are here to help you make better financial decisions now for a beautiful financial future. Talk to us to find out how we can help you make the best of this year’s federal budget. Scotts Chartered Accountants Sladen House, 410 Pakington Street NEWTOWN | P: 03 5224 1133 Email: info@scottsca.com.au This article is provided as general information only and does not consider your client’s specific situation, objectives or needs. It does not represent accounting advice upon which any person may act. Implementation and suitability requires a detailed analysis of a client's specific circumstances.