Tax rules to be repealed are company loss-carry back (1 July 2013), low income superannuation contribution (1 July 2013), income support bonus (1 July 2013), school kids bonus (1 January 2014) and capital allowances concessions. ![](http://www.acctweb.com.au/images/Reduced%20Tax%20Allowance%202.jpg)
The capital allowances concessions will be scaled back as:-
- small business entities would be able to claim a deduction for the value of a depreciating asset that costs less than $1,000 (rather than the $6,500 before 1 January) in the income year in which the asset is first used or installed ready for use;
- small business entities would be able to claim a deduction for an amount included in the second element of the cost of a depreciating asset that was first used or installed ready for use in a previous income year, provided the amount is less than $1,000 (rather than $6,500 before 1 January);
- small business entities would be able to allocate depreciating assets that cost $1,000 (rather than $6,500 before 1 January) or more to their general small business pool and claim a deduction for the depreciation of the assets in the pool;
- assets allocated to the general small business pool will depreciate at a rate of 15% in the year in which they are allocated, and a rate of 30% in subsequent income years; and
- if the value of a small business entity's general small business pool is less than $1,000 (rather than $6,500 before 1 January) at the end of the income year, the small business entity would be able to claim a deduction for the entire value of the pool.
Motor vehicles would be subject to the same rules as other depreciating assets
15th-February-2014 |