We have now begun the 2015/2016 financial year and there are a few important updates that may be of interest.
Small Business (<$2M Sales) Tax Concessions now apply
- $20,000 asset deduction - Small businesses can immediately deduct assets costing less than $20,000 purchased since 7.30pm 12 May 2015. This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000 in the income year in which the asset is first used or installed ready for use.
- Cut in Corporate Tax Rate - From 1 July 2015, the company tax rate for small incorporated businesses (with annual turnover less than $2M) has been cut by 1.5% percentage points, from 30% to 28.5%. Of course, only about one third of Australian businesses are structured as companies so if you operate as a sole trader, partnership or trust and turn over less then $2M you are eligible for a 5% discount on your tax from 1 July 2015. This discount is viewed to be in line with the 1.5% reduction in the corporate tax rate. The 5% discount will be capped at $1,000 per individual in an income year and will be provided in the form of a 'tax credit' in your income tax return. Individual taxpayers will still calculate their business and personal income the same way but they will get a 5% discount on the tax payable on their business income.
Minimum Wage Increase
Minimum wages have increased 2.5% from 1 July 2015. To check your new wages rates please refer to the FairWork Ombudsman Pay Guides or Pay Calculator. The new minimum wages apply to the first pay period that starts on or after 1 July 2015. If you require assistance to find your new minimum wages, please contact the office.
ASIC Fee Increase
ASIC has increased their fees as at 1 July 2015. The new company annual review fee is $246.00. Late payment fees have also increased.
Employee tax withheld rates have changed from 1 July 2015. The new tax rates apply to the first pay from 1 July 2015. To check your tax withheld rates please refer to the ATO website and select your relevant pay period (i.e. fortnightly). If you require assistance, please contact the office.
2015 Payment Summaries
2015 Payment Summaries (Group Certificates) are required to be provided to your employees by 15 July 2015. If we prepare the payment summaries for you, please ensure we have the information no later than Friday 10 July.
Final June 2015 super contributions must be paid by 28 July 2015.
Thank you for your support over the past year and we look forward to working with you again this financial year.