Interaction

Improvements to small business concessions - Bill introduced into parliament

From 2012-2013 the small business low value asset immediate write-off will increase from $1,000 to $6,500. The general business pool and long life small business pool will be consolidated into a single pool to be written off at one rate. The 25 per cent Entrepreneurs Tax Offset will be cancelled. Small Businesses will be able to claim $5000 initially in accelerated depreciation for motor vehicles acquired in the 2012-2013 and later tax years. 

(Reminder: a small business has aggregated turnover less than $2 million)

The amendments aim to define the appropriate method used to work out the capital/dividend split of share buy-backs and 
provided that where the approved method is used to determine the dividend/capital split certain tax avoidance measures will not apply (i.e. streaming rules). Where a listed company undertakes an off-market buyback notional losses on the disposal of the shares/interests will be denied. The market value uplift will be removed and the time to provide a distribution statement will be extended. 

Increase in Superannuation Guarantee - Bill introduced into Parliament 

From 1 July 2013 the Superannuation Guarantee percentage will gradually be increased from 9 per cent to 12 per cent in the 2019-20 financial year and the Superannuation Guarantee age limit will increase from 70 to 75 years.