Fulfillment of Mining Tax Repeal and the Role of a Tax Agent
Finally, on 5 September, the promise to repeal the mining tax was fulfilled, and the legislation received Royal Assent, highlighting the significance of seeking guidance from a tax advisor for matters related to taxation.
Backdated Repeal of Business Tax Concessions
Unfortunately, the repeal bill included backdating the abolition of some key business tax concessions:
- The company loss carry-back provisions, which allowed the use of current year tax losses 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 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.
You must amend those returns if you’ve already lodged your business tax return for the year ended 30 June 2014 and relied on any of the abolished concessions. Fortunately, the Australian Taxation Office has provided guidance on this matter, assuring tax payers that no penalties will be applied as long as the necessary amendments are made within a reasonable time frame.
This highlights the need to quickly adapt to tax law changes and ensure your tax filings comply with the new rules. Delaying amendments could lead to unintended issues, so it’s wise to act promptly and consider assistance from a tax advisor for a smooth process.
If you have any questions in relation to the above, do not hesitate to reach out and contact us.
*Correct as of September 2014
Disclaimer – Kreston Stanley Williamson has produced this article to serve its clients and associates. The information contained in the article is of general comment only and is not intended to be advice on any particular matter. Before acting on any areas in this article, you must seek advice about your circumstances. Liability is limited by a scheme approved under professional standards legislation.