I know I should wait until the Bill goes back to the House of Reps this evening to confirm the Senate amendments before writing this post but…
From 1 January 2014 (installed ready for use from this date) the instant asset write off for small businesses is $1,000 (down from $6,500). Also, there is no $5,000 immediate write off for cars from 1 January 2014.
The Palmer United Party senators has agreed to pass the Mining Tax Repeal Bill (now called Minerals Resource Rent Tax Repeal and Other Measures Bill 2014) and this Bill reduces the instant asset write off for small business. It also repeals carry back losses from 1 July 2013 (if anyone cared…).
- The school kids bonus stays in place to December 2016, but would now only be available to families earning $100,000 a year or less (adjusted taxable income).
- The low income super contributions (a co-contribution for those earning less than $37,000) stays until June 2017.
- The low income bonus stays until December 2016.
What did the Government get to cover the costs of these changes:
- The SG rate will stay at 9.5% until 30 June 2021, only making it to 12% by 2025 rather than 2019. This means poor public servants don’t get their free SG pay rises for some time. For the private sector, as Bill Shorten admitted in government, an SG rate rise is just a reduction in take home pay as your pay rise is reduced by the raise in the SG rate. I am sure he he wishes he did not say that now, even if it is true.