Small Business Concessions changes

Do you claim small business concessions?

New laws have passed that reduce or remove some small business concessions. The changes take effect from 1 January 2014, which means they could affect your 2013–14 business income tax return. The new laws reduce the instant asset write-off limit from $6,500 to $1,000 and remove the accelerated initial deduction for motor vehicles.

Instant asset write-off

This means assets that cost less than $6,500 (acquired and installed ready for use by 31 December 2013) can still be immediately written-off. Any assets acquired or installed from 1 January 2014 onwards can only be immediately written-off if they cost less than $1,000.

Accelerated initial deduction for motor vehicles

You can only claim accelerated initial deductions for motor vehicles that cost $6,500 or more if they were acquired and available for use by 31 December 2013. From 1 January 2014 onwards, the special depreciation rules for motor vehicles no longer apply.

ATO INTEREST RATES IMPOSED ON OUTSTANDING DEBTS AND PAYMENT ARRANGEMENTS PLANS

If you are currently in payment arrangement or have outstanding debts with the Australian Tax office, tabled below the current rates for General Interest Charge (GIC) and Shortfall Interest Charge (SIC):

The GIC rates are in the table below.

Quarter

 

GIC annual rate

GIC daily rate

October – December 2014

 

9.63%

0.02638356%

July – September 2014

 

9.69%

0.02654794%

The SIC rates are in the table below.

Quarter

SIC annual rate

SIC daily rate

October – December 2014

5.63%

0.01542466%

July – September 2014

5.69%

0.01558904%

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Azure Group
Azure Group

Azure Group is the leading Chartered Accounting, Business Advisory and Strategic Advisory firm supporting the growth & success of fast growing entrepreneurial businesses.

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