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Small business

Extension of the instant asset write off for SBEs
The Government has announced that they will extend the higher instant asset write off threshold for Small Business Entities (SBEs) a further year until 30 June 2018. The threshold has been $20,000 since 12 May 2015 (2015 Budget Night) and was due to revert back to $1,000 on 1 July 2017.

SBEs will continue to be able to claim a deduction in full for assets that cost less than $20,000 (GST exclusive) as long as they are installed and ready for use by 30 June 2018. SBEs were re-defined by legislation that was announced in the 2016 Budget and recently passed by the Senate. To qualify as an SBE an entity must have turnover (gross income) below a certain threshold. The relevant thresholds are:


Re-commitment to 2016 “Jobs & Growth” measures
The Government recently passed measures through the Senate to give corporate businesses with a turnover up to $50 million progressive tax cuts over the next 10 years. The original announcement in the 2016 Budget was that these tax cuts would apply to eventually apply to all businesses (as shown in the table below). They have announced their intention to continue to pursue these tax cuts.

Taxable Payments Reporting System
The Taxable Payments Reporting System will be extended from 1 July 2018 for contractors in the Courier and Cleaning industries (previously it applied to the Building and Construction industries). This means that businesses operating in those industries will need to submit an annual report disclosing payments made to contractors during the year. This is a similar process to the Annual Payment Summary Report for employees.

GST and Digital Currency

The GST treatment of digital currency, such as Bitcoin, will be aligned with money from 1 July 2017. Previously, these currencies were viewed by the Taxation Office as being neither money or foreign currency and, therefore, not a financial supply for GST purposes.

This resulted in the potential for double taxation for GST purposes – when the digital currency is purchased and when it is used to exchange for other goods and services.

New business levies

Major Bank Levy
The Government will introduce a levy on the five major banks in Australia of 0.06% of the bank’s licensed entity liabilities. It is expected to raise $6.2 billion over the forward estimates period. It will not apply to general consumer bank accounts or home mortgages.

Levy on certain skilled visas
From March 2018, businesses that employ workers on certain visas will pay a levy that will contribute to a Skilling Australians Fund. The levy varies depending on the type of visa and businesses with a turnover of less than $10 million will pay reduced levies.

 

Follow the links to read about the sections that are relevant to you and if you have any queries about the impact of these announcements then please don’t hesitate to contact us.

bulletAnalysis for the individual
bulletAnalysis for business
bulletSuperannuation analysis
bulletNFPs and Social Service reform
bulletRetirement, Social Security

 

 

 

Murray Nicholls

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