The key election promise to repeal the mining tax has finally passed through the Senate, and received Royal Assent on 5 September.
Unfortunately the repeal bill included backdating the abolition of some key business tax concessions:
- The company loss carry-back provisions, which allowed a use of current year tax losses in order to get a refund of prior year tax, have been abolished from 1 July 2013. This means that the rules effectively applied only for one year.
- The instant asset write-off threshold has been reduced from $6,500 down to $1,000 from 1 January 2014.
- Accelerated depreciation of motor vehicles, which allowed small businesses to claim up to $5,000 as an immediate deduction for motor vehicles costing more than $6,500, has also been abolished from 1 January 2014.
If you’ve already lodged your business tax return for the year ended 30 June 2014 and relied on any of the abolished concessions, you will now need to amend those returns. The ATO website indicates that no penalties will apply provided amendment is sought within a reasonable time.
*Correct as of September 2014
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