Instant tax write-off for small business assets extended

Instant tax write-off for small business assets extended The Prime Minister has announced that, from 29 January 2019, the instant asset write-off scheme will be extended so that it is available to small businesses until 30 June 2020. It is proposed that the threshold for the assets purchased under the scheme be increased from $20,000 to $25,000. The scheme allows small businesses to claim a tax deduction for the purchase of a new or second-hand asset costing less than $25,000, instead of depreciating the cost over several years. There is no limit on how many assets may be claimed. It is important to note that this change must be passed by parliament. The government intends to introduce a Bill when parliament resumes on 12 February 2019. If you would like more information about the instant write off.   Please call our office to discuss how this can assist your business. read more

When is a contractor not a contractor?

When is a contractor not a contractor? Mistaking an employee for a contractor can devastate any business, with fines of up to A$63,000 per breach. Contract work is definitely on the rise. A recent survey by PwC revealed that 46 per cent of global human resources (HR) professionals believe contractors or temporary workers will comprise at least 20% of their workforce by 2022. The sentiment is strongest in China, where half of the survey’s respondents believe traditional employment is being chipped away by an emerging preference among workers for greater freedoms, entrepreneurship and specialist skills. In Australia, 23% of employers say they now regularly engage contract or temporary staff – with another 44% employing them for special projects – according to the 2017 Hays Salary Guide. The Australian Bureau of Statistics estimates there are one million independent contractors currently working in Australia, representing about 9% of the workforce – an increase of 2% in the last six year. Why use a contractor? For a businesses looking to lower overheads and improve flexibility, contracting appears to be a perfect solution. In theory, employers can hire the resources they need, when they need them, without taking on the associated infrastructure and taxation overheads required for permanent employees. In Australia, […] read more

Claiming deductions for education expenses against youth allowance

The ATO will continue to apply its current administrative treatment of self-education expenses. That is, education expenses are not deductible against various Commonwealth educational assistance schemes. read more

Overview of the HECS-HELP benefit

Overview on the four benefit types - ECE teachers, maths/science, education and nursing graduates. read more