30 May Budget Announcements
Summary of the May Budget Announcements
Personal Taxation
Seven-year reform for personal income tax rates to start from 2018-19 and ATO has decided not to process with Medicare levy tax rise.
Business Taxation
The ATO has extended the $20,000 instant asset write-off for SBE’s by 12 months; Anti-avoidance rules: family trust circular distributions; deductions disallowed for holding vacant land and ATO are enhancing integrity of concessions for partnerships.
Tax Compliance and Integrity
No tax deduction for non-compliant PAYG and contract payments; ATO are set to introduce a cash payment limit of $10,000 made to businesses; Reportable payments are extending to security providers, road freight transport and computer design.
Superannuation
SMSF member limit to increase to six; work test exemption for contributions by recent retirees; Audit cycle set to three years for good compliant funds; super fees to be capped at 3% for small accounts and exit fees to be banned; Superannuation insurance opt-in rule for younger and low-balance members.
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