Another month has been and gone. Mid year has come at us so fast. That means the end of the financial year is literally around the corner.
If you wish to review your circumstances or make plans for next financial year, come and see us. We can put strategies in place so you can start fresh come 1 July 2017.
We have a new recruit! Lauren has joined our team. She is a welcome asset to the Administration Team. Welcome Lauren!
State of Origin time again. The stakes are high here at McDonnell Hume Partners as our annual tipping comp for the 2017 Origin Series is under way. Will Martin be a back to back winner...... Martin's tip for this year, "Don't let your heart rule your head!!!!"
Carla has started her maternity leave journey and welcomed baby Gracie to the world! Congratulations Carla! Wishing you and your new little family many happy memories together.
It's important to note that at this point in time, these proposed measures are not yet law and may be subject to change.
0.5% Increase in Medicare Levy
From 1 July 2019, the Medicare levy will increase by 05% to 2.5% of taxable income.
Reduced Residential Property Deductions
From 1 July 2017, the Government will no longer allow deductions for travel expenses related to inspecting, maintaining or collecting rent for residential rental property. However, investors can continue to deduct those types of expenses incurred by third parties such as real estate agents and property management services.
In addition, from 1 July 2017, depreciation deductions on plant and equipment (for example dishwashers and fans) will be limited to outlays actually incurred on residential properties. For plant and equipment purchased after 9 May 2017, deductions are claimable over the effective life of the asset only by the investor who bought the items. An investor will therefore no longer be able to claim depreciation on plant and equipment which formed part of the property at the time of purchase.
For investors with existing investments as at Budget night, grandfathering rules will apply, broadly allowing deductions to continue until either the investor no longer owns the asset or the asset reaches the end of its effective life.
Extending the Immediate Deductibility Threshold for Small Businesses
The Government will extend the accelerated depreciation rules for small businesses by 12 months to 30 June 2018. This allows small businesses, with aggregate annual turnover of less than $10 million, to immediately deduct purchases of eligible assets up until 30 June 2018, provided the asset costs less than $20,000 excluding GST.
The Government has proposed changes that will see the HELP contributions repayment threshold being lowered. From July 2018 students will be required to start paying back their loans when they reach an income level of $42,000 per year, down from the current 2017 level of approximately $54,869.
Goods and services tax (GST) reporting on the business activity statement (BAS) is getting easier for small business.
This is due to a change to GST reporting called Simpler BAS- a partnership between the ATO, software developers, tax professionals and small business associations.
With simpler BAS from 1 July 2017 small businesses will have less GST information to report on their BAS. The only GST information required will be:
- G1 Total Sales
- 1A GST on sales
- 1B GST on purchases
The following information will no longer be required:
- G2 Export sales
- G3 GST- free sales
- G10 Capital purchases
- G11 Non-capital purchases
If your annual GST turnover is less than $10 million, you will be transitioned to Simpler BAS reporting from 1 July 2017.
Simplier BAS will not affect how other taxes are reported (eg PAYG income instalments or PAYG tax withheld), or how often you submit your BAS.
You still need to keep records, such as invoices, as proof of any claims you make in your BAS and income tax return lodgements.
Once again, please contact our office if you would like to know how the above changes affects you or your business directly. We'd love to hear from you!
McDonnell Hume Partners
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