Australia Reminds SMEs Of Tax Relief Deadline
18 June 2013
Posted by: Author: Mary Swire
Author: Mary Swire
Australian Treasurer Wayne Swan has issued a reminder to the country's 3.2m small businesses that they have just 13 days of the current financial year left to access "generous" tax reliefs.
In a joint release with the Small Business Minister Gary Gray and the Parliamentary Secretary for Small Business, Bernie Ripoll, Swan urges small businesses to take advantage of the AUD5.2bn (USD4.99bn) worth of tax incentives available. According to the release: "The Gillard Government understands the importance of cash flows and simplified tax laws to help small businesses get ahead."
Among the initiatives launched by the Government is a AUD6,500 instant asset write-off for small businesses investing in new equipment during the 2012-13 financial year. Any businesses purchasing assets costing under AUD6,500 are able to deduct the full amount against income earned. The Government claims that this "will ease the burden of bookkeeping having to depreciate assets over a number of years."
In the case of assets costing over this threshold, businesses can depreciate them in a single pool and claim 15 percent back in the first year, and 30 percent in each following year.
An additional loss-carry-back scheme permits companies with insufficient income to carry back up to AUD1m of these deductions against profits made in the preceding tax year. They will be able to receive up to CAD300,000 each year from tax previous paid.
Setting out the Government's position ahead of the forthcoming general election, the statement describes the reforms as "meaningful," and points to their earlier recommendation by the Future Tax System Review. It concludes by warning that the coalition opposition will "unwind a number of these reforms, reverse these tax cuts for small businesses and increase red tape."