Federal Budget 2008-09
More Personal Tax Cuts
The Government has confirmed it will deliver in full the tax cuts it announced during the 2007 election campaign. We are expecting the following changes to individual tax rates:
From 1 July 2008:
From 1 July 2008:
From 1 July 2008:
The Government also set an aspirational tax goal over six years for a personal income tax system which reduces the number of rates from four to three with a personal income tax scale of 15%, 30% and 40%.
In addition, the Government has announced increases in the low income tax offset (LITO) that will effectively mean that from 1 July 2008, if you are eligible for the full LITO, you will not pay tax until your income exceeds $14,000. This will also rise in 2009 and 2010.
Small Business Tax Concessions
You may already be aware that access to small business tax concessions was simplified from 1 July 2007.
You can now pick and choose what type of concession suits your business:
- most small businesses with an aggregated annual turnover of less than $2 million are able to access a range of small business tax concessions, ranging across income tax, capital gains, GST and PAYG; or
- if your business does not satisfy this $2 million threshold test, but the net value of its CGT assets does not exceed $6 million, it may still be able to access the CGT small business concessions, subject to satisfying any other eligibility tests.
With effect from the 2007-08 year, access to the small business CGT concessions will now be extended to:
- taxpayers owning a CGT asset used in a business by a related entity; and
- partners owning a CGT asset used in a partnership business.
Luxury Cars
If you’re going shopping for new cars in the new financial year, you may find them more expensive.
From 1 July 2008 the luxury car tax rate is expected to increase from 25% to 33%, bearing in mind that the luxury car tax currently cuts in at $57,123.
Before you rush out and go car shopping before 1 July 2008, it’s still not clear in what circumstances the 25% rate will continue to apply before 1 July (e.g., whether you simply need to order before 1 July or whether you will also have to take delivery of the vehicle on or before 30 June 2008)
Disclaimer
We believe the advice and information contained in this newsletter to be accurate and reliable but no warranty of accuracy or reliability arising in any other way for errors or omissions (including responsibility to any person by reason of negligence) is accepted by the company or its officers.
News Archive
Cash Bonus for Taxpayers
Autumn 2009
Federal Budget 2008-09
December 2008
Christmas Cheer and
the ATO
November 2008
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