Big business changes will impact some of our clients in future years, such as the obligation for monthly tax instalments from 2017 for businesses with $20 million turnover.
Research & Development incentives will be removed for businesses with turnover of more than $20 billion.
Outside of the increase to the Medicare Levy to fund the disability scheme, the biggest saving in the budget is $4 billion worth of changes to tax rules affecting multinational companies, including tweaks to thin capitalisation rules. There’s also the removal of tax deductions for mining exploration and a crackdown on the use of trust structures by the wealthy.
The government has announced that this change will now be applied to companies with between $20 million and $100 million in revenue. Previously, companies with over $1 billion in revenue would pay monthly from January 1, 2014, while companies with over $100 million in revenue would pay monthly from the start of 2015. Now companies with over $20 million in turnover – including hundreds of mid-sized companies – will pay monthly from 2016. The move will increase government revenues by $1.4 billion across 2015-16 and 2016-17.
We feel this is just a distraction designed to make the numbers look better than they are for now.
Please do not hestitate to contact me, or any of our other Partners, if you have concerns over this change. You can phone on (02) 9238 1188 or email ourteam@azuregroup.com.au.
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