If you are a business owner, this year’s Budget is nothing to rave about. However, there are a few changes, new introductions and policy continuations that are worth noting and may be beneficial for your business.
Extension of instant asset write off
Small businesses with a turnover of less than $10 million may continue to claim an up-front deduction for newly acquired eligible assets valued at less than $20,000 until 30 June 2019.
Wage subsidies for older Australians
Businesses who employ older Australians may be eligible for a wage subsidy of up to $10,000.
Introduction of a cash receipt limit
The Government will introduce a limit for cash payments of $10,000 for goods and services. Proposed to start from 1 July 2019, the move aims to reduce tax avoidance and money laundering activities. Consumer to consumer non-business transactions as well as transactions with financial institutions will not be affected.
Employee and contractor payments
Businesses who make payments to employees and contractors but fail to withhold the required PAYG, will no longer be eligible to claim deductions for these payments.
Those in the agribusiness space will share a sigh of relief with no changes announced to the existing concessions introduced in last year’s budget. These allow farmers to deduct expenditure on water infrastructure and fencing and write-off fodder storage assets such as hay sheds over three years. An investment in GPS technology and satellite data is also on the cards to deliver a Satellite-Based Augmentation System (SBAS) which will improve the reliability and accuracy of positioning data from five metres to 10 centimetres across Australia and its maritime zone.
Status of changes
The information set out above is based on the data and budget information announced by the Commonwealth of Australia concerning the proposed 2018-19 Commonwealth Budget. Please note that although the changes outlined above have been proposed by the Government, the proposed legislative changes that are necessary to implement the proposed Budget are not yet finalised and may be subject to change as the relevant legislation implementing the changes proposed by the Budget passes through parliament. The above summary is intended as general information only and is not intended to constitute taxation or financial/superannuation planning advice. The application of many laws, including taxation laws, are dependent upon an individual’s personal circumstances. You should, therefore, not make any investment or other financial decisions in reliance upon the information set out in this correspondence and should seek professional advice on the financial, legal and taxation implications before making any such decisions.