There were some key announcements made for businesses in the recent Federal Budget for 2018/2019. Small business was a big winner in this year’s budget, with the extension of the $20,000 immediate asset write-off for businesses with a turnover of less than $10 million. Here are some of the big business benefits:
- The extension has been granted until 30 June 2019. This will be welcomed by farmer groups and regional communities as a key measure for small businesses.
- Employee and contractor payment tax deductions will be denied if PAYG withholding requirements were not complied with.
- In an effort aimed at cracking down on tax avoidance and money laundering cash payments over $10,000 will be made illegal.
- For developers who purchase vacant land in a separate entity, the government is proposing to deny an interest deduction on loans to purchase vacant land (land banking). If you can prove, however, that there is a legitimate property development business being carried on, you will have nothing to worry about.
- The ‘Taxable Payments’ Contractor Payment Reporting regime will be expanded. Currently, it applies to the building industry and will expand to the cleaning and courier businesses.
- The Government is dedicated to all previously declared measures like the reduction in company tax rates over time to 25%.
- The Government has also promised to issue a discussion paper on taxing of digital transactions, in an effort to create a way to tax digital currencies.