The Australian Government has recently passed its bill to repeal the mining tax. The bill also abolishes several measures that were introduced with the mining tax as “sweeteners”.
The bill will result in the following changes:
- Abolition of the mining tax from 1 October 2014;
- Removal of the company loss carry-back rules effective from the 2013/2014 financial year (meaning that these rules were only available in a company’s 2012/2013 income tax return);
- Reducing the small business instant asset write off threshold to $1,000 for assets purchased from 1 January 2014;
- Removal of the small business accelerated car depreciation concession for vehicles purchased from 1 January 2014;
- Freezing the Super Guarantee percentage at 9.5% until 1 July 2021 when it is scheduled to increase to 10%;
- Ending of the Low Income Superannuation Contribution from 1 July 2017;
- Removal of the Income Support Bonus from 1 January 2017; and
- Abolition of the Schoolkids Bonus from 1 January 2017 (and with means testing limiting the bonus to families earning less than $100,000 per annum for the period between 5 September 2014 and 31 December 2016).
Should you have any queries in relation to the impact of these changes to your family or business, please contact your Pilot Advisor on (07) 3023 1300.