What new tax changes will affect small businesses in 2014/2015? Here's what you need to know.
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Some proposed small business tax changes haven't yet passed Parliament, but are still being actively considered for implementation. Those which are definitely happening include:
New tax tables for calculating how much tax you need to withhold from employees, covering the increases in Medicare levy (from 1.5 per cent to 2 per cent) and the Temporary Budget Repair Levy for people earning more than $180,000 a year.
The ability to carry back losses to previous tax years has been eliminated for the 2013/2014 financial year.
Accelerated deductions for motor vehicles is in a weird indeterminate world. The government intends to repeal the rule allowing $5000 in the value of a motor vehicle costing up to $6500 to be immediately deducted, rather than depreciated over time. That change hasn't happened, so you can still claim such a deduction — but once the law changes, you'll have to apply for an amendment.
Check out our guide to changes that will affect individual taxpayers for details on issues that might affect your employees.
Reminder: For specific tax advice relating to your individual situation, consult a registered professional.