The National Tax and Accountants Association have prepared a video summary of tax changes from the budget handed down last night.

In the video you will learn about some of the changes that affect your business. Highlights from the video include:

1. immediate in full deduction for depreciating asset purchases <$20,000 per asset (no limit to number of assets)
2. tax cuts for small business of 1.5% for companies with turnover <$2M
3. un-incorporated businesses with turnover <$2M receive a 5% discount on income tax
4. changes to motor vehicle expenses:
   1. 2x models have been dropped, leaving only log book and cents per km methods
   2. cents per km is now a flat $0.66/km – regardless of engine size
5. restrictions on zone tax offsets mean individuals now need to reside in the zone for >50%, rather than just work there
6. immediate deduction for full costs incurred (such as from an accountant or lawyer) to start a new business
7. CGT Rollover exemption extended to support a change of business structure (e.g. sole trader to company or trust) without triggering a CGT event
8. accelerated depreciation for primary producers on capital expenditure:
   • immediate deduction for items like fences and water facilities
   • reduction in depreciation schedule for items such as fodder storage (from 50 yrs to just 3yrs!)
9. FBT exemption for mobile electronic devices (tablets/ipads/etc) for SMB employees

Watch the video in full below:

Lloyd Priddle

Lloyd has had a very successful career as an accountant, director and author for almost 40 years. Holding post-graduate qualifications in Business, Lloyd has specialised in Business Development, and worked with the Queensland Government and local councils on numerous occasions through association with AusIndustry and the SBAS Natural Disaster Assistance Program. He is also board member of a number of commercial and not-for-profit entities.