Major Tax Changes in 2018

This financial year, the ATO have introduced many changes to legislation, some of which are summarised below:

  • Deductible superannuation contribution cap reduction to $25,000 per annum & non-deductible contribution cap to $100,000 per annum.
  • Changes to superannuation contribution deductibility, including removal of work test allowing individuals on salary and wage make personal deductible contributions
  • Small Business Company Tax Rate changes for passive investment companies
  • Small Business Turnover threshold increased allowing more businesses to be eligible for small business concessions
  • Introduction of First home super saver scheme allowing first home buyers to use superannuation as saving mechanism with voluntary contributions from 1 July 2017
  • Introduction of Superannuation Transfer Balance Account Reporting requiring members of superannuation funds to regularly report various additions and withdrawals of their superannuation account
  • Changes to depreciation claims on investment properties
  • Division 293 Tax will be payable on deductible contributions made by individuals with taxable income over $250,000 (reduced from $300,000)
  • Rental property owners are no longer eligible to claim deductions for travel to inspect their properties
  • Limited eligibility for depreciation on second hand plant & equipment in a residential rental property, so that the entity that actually purchased the plant & equipment can claim the deduction & not successive investors in the property

As the legislation is always changing, we recommend a review of your financial position to plan and implement the best strategy moving forward to reach your goals.

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