I would like to take this opportunity to update you as to some of the new and exciting changes taking place at Peter Hayes and Associates moving forward.
Ashley Frahn, who has been my Manager and Tax Specialist Chartered Accountant for the past 12 years, has decided to leave our firm in search of new adventures. Ashley has been an outstanding member of our team and enormously supportive to me.
I will greatly miss him as will the rest of my team, and of course, all of our clients.
I have been fortunate to secure another Senior Chartered Accountant who is familiar with all areas of Small Business Entities (SME’s) including Farm Enterprises.
Ashley leaves us on Friday 16 October 2020 and Dimitri Langanis will begin his new role on Monday 19 October 2020. We welcome Dimitri.
THE NEW BUDGET
Over the last four days, our Team has taken part in three Intensive Tax Webinars run by the Tax Institute of Australia, getting up to speed with what this Budget has to offer our clients.
These Webinars did not cover enough detail regarding the new Depreciation Deductions outlined in the Budget.
Therefore, I contacted Robyn Jacobson, the Senior Tax Council and Andrew Mills, Director of Tax Policy and Technical from the Tax Institute of Australia seeking an answer to the Depreciation Deductions.
The answer was complicated, so if you do have any queries, please contact us.
Summary of Small Business Depreciation Deductions for 2020/21 Tax Year
- If Small Businesses purchase any plant & equipment this financial year and have it installed ready for use before 30 June 2021, then the full value of the purchase will be 100% Tax Deductible this year, either by:
- Adding assets costing more than $150,000 to the Small Business Pool if it was installed ready for use before 6 October 2020;
- Immediately deducting asset purchases under $150,000 prior to 6 October 2020;
- Immediately deducting the full cost of all assets purchased after 6 October 2020, with no limit to the amount that can be claimed.
- All Small Business Pool Balances will be automatically written off as at 30 June 2021, including any Pool Balance carried forward from 30 June 2020.
- There will be no amount of Small Business Pool carried forward past 30 June 2021.
These changes have a huge affect on how to Tax Plan for your Business in this year. There are also certain exemptions to the rules, so please contact us if you have any queries.
Farmers must consider:
- FMD’s held to 30 June 2020
- Small Business Pool Balances to 30 June 2020
- Capital Purchases in 2020/21
- Grain marketing before Harvest
- Deferring Harvest production
Other Business must also consider their Tax Position in this Tax Year.
Clearly, this Budget will generate a huge amount of cash into the Economy, and we as Taxpayers must take advantage of the opportunities and maximise those opportunities.
We believe that 2021 will be a much healthier year with a great deal to offer and we look forward to assisting you with all of your Tax matters.