Tax changes for the new year ahead:
Claiming personal super contributions from 1 July 2017 – removal of the 10% test
From 1 July 2017 – Government has removed the requirement for individuals to satisfy the 10% test in order to be eligible to claim a deduction for a personal contribution.
Claiming travel expenses has been updated
New tax ruling represents a positive shift in the way ATO views the deductibility of travel expenses. Particularly for certain travel arrangements that have become more commonplace in the modern working environment. For example where an employee is required to work at more than one work location for the same employer.
Small Business $20,000 immediate write-off Extended until 30 June 2019
Small businesses $20,000 immediate write-off has been extended for a further 12 months to 30 June 2019. For businesses with an aggregate annual turnover less than $10million. So small businesses can immediately deduct purchases of eligible assets costing less than $20,000. (including GST)
Medicare Levy to remain unchanged
Superannuation related changes
Exemption from the work test for voluntary contributions From 1 July 19 – Government will introduce an exemption from the work test for voluntary contributions to superannuation. This will be for people aged 65-74 with superannuation balances below $300,000. In the first year that they do not meet the work test requirements.
Three-yearly audit cycle for some SMSF’s From 1 July 2019 the Government will change the annual audit requirement to a 3 yearly requirement for SMSF’s with a history of good record keeping and compliance.
New ‘downsizer contribution’ on the sale of a dwelling From 1 July 2018 there will be greater flexibility for older Australians selling their home to invest some or all of the sale proceeds into superannuation. Individuals aged 65 years or more will be allowed to make contributions of up to $300,000 (or up to $600,000 per couple) from the sale of a dwelling that was used as their main residence. Only if the individual or their spouse owned the dwelling for at least 10 years.
Deductions denied for vacant land
From 1 July 19 -Government will deny deductions for expenses associated with holding vacant residential or commercial land, including interest incurred to finance the acquisition of the land.