TAX NEWS

TAX AT A GLANCE!

 

  1. Depreciating assets that are first used or installed ready for use prior to 1 January 2014 will be subject to the $6,500 threshold. Up to $6,500 can be claimed as a tax deduction instantly. After the 1 January 2014, the $1,000 threshold will apply to a depreciating asset.
  2. A $5,000 vehicle write-off threshold apply to vehicles that are first used or installed ready for use prior to 1 January 2014. Therefore, up to $5,000 can be claimed as an immediate tax deduction in the relevant tax year.
  3. The $2,000 per year cap on self education expense deductions will be scrapped under the new Government. This means that there will be no statutory cap on amount that a taxpayer can claim legitimately.
  4. The current (2013-14) superannuation rate of 9.25% will increase to 9.5% on 01 July 2014. This will gradually increase to 12% by 1 July 2019.
  5. Prior to 1 July 2013, there is a government contribution up to a cap of $500 for individuals earning less than $37,000 of adjusted taxable income into their superannuation funds. The new government will take away this contribution payment which will effectively stop starting 1 July 2013.

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