Big Tax Changes This Year!
You heard the rumor right, the tax arena is changing significantly beginning on July 1, 2012. We wanted to give you some of the important changes you should know about if you’re a business owner.
● Asset instant write off increases from $1000 to $6,500.
● The first $5000 of a motor vehicle (new & second-hand) purchase is an immediate write-off (the rest to be depreciated).
●The Government super co-contribution for those with taxable income up to $61,920 is being halved to $500.
● The entrepreneur’s tax offset is being removed (currently 25% of business income for businesses grossing $50,000 and reducing for every dollar up to $75,000).
● Businesses in the building/construction industry need to start capturing payments to contractors from July 1 as the ATO will require this data to be reported annually as of July 2013.
● The Flood Levy no longer applies - start using the new tax tables as of July 1, 2012.
● The carbon tax begins.
● The tax-free threshold increases from $6000 to $18,200.
● The minimum wage increases!