On 1 July 2007, amendments to the small business tax concessions regime of the Income Tax Assessment Act 1997 commenced. Many of the important threshold tests for small businesses changed, as did some of the relevant exemptions.
In addition, new tax rates took effect, including the following:
In addition, legislation allowing easier access to small business tax concessions was also introduced — most of which was effective from 1 July 2006. These included lower threshold tests allowing more individuals and businesses to qualify as small businesses. The key changes are summarised in our full article here.
2007 saw the Victorian Government reduce Victorian land tax rates and increase the tax-free threshold.
Further, for those occupying primary production land in the Melbourne metropolitan area, special land tax was abolished:
For more information regarding the new land tax rates and what the abolition of the special land tax means for you and your clients, see the full article here.
Taxpayers are reminded that 30 June 2008 marks the end of the ATO's grace period allowing 'corrective measures' to be taken to avoid penalties and double-taxation of deemed dividends under Division 7A of the Income Tax Assessment Act 1936 (Cth).
Cleardocs provides a solution in its Div7A Loan Agreement, which includes the option to have the agreement cover payments already made to company shareholders or associates. This can be accessed here.
Further explanation of the grace period and appropriate 'corrective measures' can be found in our full article here.
Julian Smith is a partner in the Maddocks Commercial team.
Julian advises extensively in the following areas:
Julian advises clients ranging from public companies servicing the wholesale financial services market to high net worth individuals and their advisers.
Julian has been with Maddocks since undertaking articles in 2001.
The legal information and commentary on this site is general only. Documents ordered through Cleardocs affect the user's legal rights and liabilities. To assess their suitability for the user, legal accounting and financial advice must be obtained.
For more information, contact Maddocks on (03) 9258 3555 and ask to speak to a member of their team.