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$20,000 ASSET WRITE OFF

The Small Business $20,000 immediate asset write-off is still available.  It has been extended to 30 June 2019.  This allows businesses with sales of up to $10 million per year to claim a 100% deduction for assets costing less than $20,000 (excluding GST).  The $10 million per year sales threshold takes into account sales from all your related businesses (aggregated sales).  If your aggregated sales exceed $10 million none of your businesses will have access to this concession.

WHAT IS DIVISION 293?

Division 293 was introduced by the Federal Government in the 2012/13 financial year.  It is aimed at reducing tax concessions available to high income earners.  When first introduced the threshold was $300,000 per annum (adjusted taxable income).  In the 2017 Federal Budget this threshold was further reduced to $250,000.  the lower threshold applies from 1 July 2017.  Division 293 imposes additional tax on tax deductible superannuation contributions made by or on behalf of persons who exceed the threshold.  Deductible superannuation contributions ordinarily attract 15% tax.  Division 293 imposes an additional 15% tax meaning superannuation contributions made by or on behalf of these persons will attract a total of 30% tax.  Persons affected are assessed individually.  When you lodge your tax return the ATO will amend your notice of assessment to account for this additonal tax.

Changes in the Federal Budget May 2017 reduced the amount of tax deductible contributions an individual can make to superannuation each year.  The maximum tax deductible contributions an individual can make per financial year is $25,000 (starting financial year 1 July 2017 to 30 June 2018).  Be aware that this limit includes all deductible contributions (self employed, employer super guarantee & salary sacrificed).  The onus is on the individual to manage the amount they contribute each year.  Those who salary sacrifice part of their wage into superannuation must take extra care to ensure the additional contributions do not push their total annual contributions over the limit.  Penalties apply if you exceed $25,000.