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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