MAP - June 2020 Update
End of Year Tax Planning
All businesses should be undertaking an annual tax planning exercise at the moment to determine their likely taxation position for the year ending 30th June 2020.
This will assist in identifying applicable actions to take now in order to minimize your taxation liability.
The annual tax planning exercise should also make reference to, documentation of annual trust distributions resolutions (for family trust entities), and if any action is required with regards to director/shareholder loan accounts.
We are currently undertaking tax planning exercises for the majority of our clients. Should you require any assistance with your tax planning, please contact our office before time runs out.
Instant Asset Write-off Scheme
On the 9 June 2020 the Australian Government announced that the existing Instant Asset Write-Off Scheme will be extended until 31 December 2020. The Scheme, which currently allows an immediate tax deduction for assets costing less than $150,000 each, was due to revert back to the lower $1,000 threshold from 1 July 2020. All other details of the Scheme remain, as does the car limit of $57,581 for the 2019-2020 financial year. The ATO have recently advised that the car cost limit for depreciation increases to $59,136 for the 2020-2021 financial year.
In summary, the Instant Asset Write-Off Scheme:
- Will now continue through to 31 December 2020
- Is for individual or multiple assets, provided the value of each asset is under $150,000 (however cars will be impacted by the relevant car limit, depending on purchase date)
- Applies to new and second hand assets
- Available to businesses with an annual turnover of less than $500 million
2020 FBT returns are due to be lodged by the 25th of June 2020. We will be completing these returns over the next couple of weeks.
Should you have any queries please feel free to contact our office.