New Financial Year Changes

Jul 10, 2014

TaxTips.jpgEnd of financial year has come and gone (quicker and quicker each year!); and here are some new changes all SME’s should be aware of for the year of 2014/15.

Tax Changes

Superannuation Rates

Superannuation rates will change to 9.5% from 9.25% from 1st July 2014. It will remain at 9.5% until July 2018. Make sure your payroll systems have been updated to account for them, or have a look at our services here if you need assistance.

Instant asset write offs reduced to $1,000 from 1 January 2014

Under the current law, a small business can claim an immediate tax deduction for “individual” assets costing less than $6,500 ex GST including individual assets that form part of a set.

As part of the changes contained in the “Mining Tax Repeal Bill”, the Government has proposed to reduce the instant asset write-off from $6,500 to $1,000 for “individual” assets “first used or installed ready for use” on or after 1 January 2014.

Good bookkeepers should be able to assist you with this when preparing your books for your accountants. If you need help, or would like a quick health check, have a look at our services here.

Individual Tax Rate Changes from July 1st

From 1st July 2014, those earning $180,000 and over will be taxed an additional 2% Temporary Budget Repair Levy. This applies to every dollar earned over $180,000.

Two tax offsets will also be abolished from 1 July 2014

  • Dependent Spouse Tax Offset
  • Mature Age Worker Tax Offset

Again, your payroll systems tax rates should be updated for this to account for the changes (in MYOB updates may need to be applied, talk to our technicians) or in Xero these changes will have been automatically applied. If you would like a double check, or to outsource your payroll, check out our services here.

As always, Tropical Business Solutions is here to help you achieve at your business.

We provide bookkeeping, Tax Lodgement, Payroll & Superannuation Services to Small & Medium Business in Darwin & Palmerston - check out our full range of admin services here. We also provide technology services including Cloud, IT Support & much more.

We’re big on service for Small & Medium Business, every time!

Sonia Malady

Category: Bookkeeping

Sonia Malady

Director at Tropical Business Solutions.