Budget 2015: Things that make you go hmmm…
Thinking out loud:
- Not a bad pre-election Budget
- What’s missing? What is being left for the White Paper? Super changes? Small business CGT concessions? Dividend imputation system?
- ‘Small business’ definition
-so how do I make sure my business stays under $2million turnover?
-if I’m over $2million now, how far will I go to get under the threshold? Cost vs benefit
-why couldn’t we be consistent with the small business CGT definition? Lots of high turnover businesses aren’t all that profitable. Is $6million net assets test also useful?
4. What do I get if I’m a ‘small business’?
-companies get 1.5% tax cut
-non-corporates (sole traders, partnerships, trusts) look like getting a maximum $1,000 by way of a 5% tax offset (not really worth the trouble!)
-big upfront deductions for asset purchases under $20,000. The Government is trying to encourage spending temporarily until 2017 (oh, sounds like a ‘stimulus package’). No cap. The Government says ‘please spend up big’ and is counting on us to do so looking at their growth predictions. I suspect car yards will be busy today and $19,990 will be a popular price point.
5. The usual tinkering
-FBT cap to reign in certain types of charities offering generous meal entertainment salary sacrifice packages
-trying to scare the big end of town into paying their ‘fair share of tax’
-the so-called Netflix tax announced but no bank deposit tax as mooted. And the Netflix tax is broader than just Netflix by the looks. Thinking of getting that wedding invitation designed by Joe in the Philippines? Might be caught by GST.
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