ALERT: What’s changing on 1 July?

Interesting Tax changes changing on 1 July 2020:

·       Company tax rate reduces to 26% for base rate entities

·       $150k instant asset write-off scheduled to reduce back to $1,000 for small business entities and will no longer be available for entities with aggregated annual turnover of $10m or more, although accelerated depreciation rules apply to certain entities until 30 June 2021

·       Cents per km rate for work-related car expenses increase to 72 cents

·       Expected reforms to allow 66 and 67 years olds to make voluntary superannuation contributions without satisfying the work test. This reform is not yet law.

·       Age limit for making superannuation contributions to your spouse increases from 69-74. This reform is not yet law.

·       For those 67 and under, reforms will enable you to use the ‘bring forward rule’ to make up to three years of non-concessional contributions. That is, you can make non-concessional contributions of up to $300,000 from the 2020-21 financial year.

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Accumulate Accountants + Business Advisors is a consulting firm located in Perth, Western Australia that provides a range of successful businesses with strategic business advice, accounting and taxation services.

www.accumulateperth.com

info@accumulateperth.com

(08) 9364 4204

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