Tax relief for small business and primary producers passes parliament

Tax relief for small business and primary producers passes parliament

16 June 2015

Small businesses and primary producers can face the new financial year with increased certainty, with the government’s popular budget measures passing through the Senate yesterday. This means this legislation has now passed both houses of parliament and awaits Royal Assent.

Companies, corporate unit trusts and public trading trusts with a turnover of less than $2 million have had their tax rate lowered by 1.5% from 30% to 28.5%. 

Along with this, the highly anticipated small business $20,000 asset write-off scheme was also passed with little discussion. The accelerated depreciation provisions will lift the threshold where an asset is immediately deductible from $1,000 to $20,000.

The new incentive will apply to any number of assets purchased by small businesses below the value of $20,000, but any purchases above the $20,000 will be treated as part of normal small business depreciation arrangements.

As for the concessions for primary producers, they were also tabled in parliament yesterday with the green light given to those measures announced on budget night. Primary producers can now claim accelerated deductions on capital expenditure on water facilities, fodder storage assets and fencing incurred since the 2015 Budget was handed down at 7:30pm on 12 May.

The primary production concessions are not limited to small business entities and will allow primary producers immediate deductions for expenditure on eligible water facilities and fencing and deductions for eligible capital expenditure on fodder storage assets in equal instalments over three years.

Whilst every client’s situation needs to be addressed individually, it is clear that many may benefit from these measures. If you would like to know more please speak with your local Boyce accountant.

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