Federal Budget – Key Takeaways

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By Chris Smith

Federal Budget – Key Takeaways

On 14 May the Government released their 24/25 Federal Budget.

There are only a few announcements impacting SME business owners.

Summary of Key Announcements:
 
Announcements Impacting SME Business


Instant Asset Write Off

The $20,000 Instant Asset Write Off (IAWO) will be extended by 12 months until 30 June 2025. Businesses with turnover of less than $10 million will be able to continue to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 for the 2024/25 income year. This requires the entity to be using the Simplified Depreciation under a General Asset Pool.

Tax Compliance & Integrity Measures

The Federal Budget 2024-25 sees the extension of initiatives aimed at the ATO’s recovery of outstanding tax debt and the continuation and expansion of tax and GST compliance programs
(ie. more audit activity by the ATO).

This includes extending the ATO Shadow Economy Compliance Program and the ATO Tax Avoidance Taskforce.

ATO Compliance Program and Tax Avoidance Taskforce

The ATO continues to receive increased funding to pursue key tax avoidance risks, with a focus on multinationals, large public and private businesses, and high-wealth individuals. This will lead to a continued increase in ATO reviews and audits.

Personal Tax

The revised Stage 3 tax changes have been legislated and will apply from 1 July 2024.

Tax rate for resident taxpayers for the 2024-25 year of income or a later year of income:


Other Measures

The Government announced their intention to provide the Commissioner of Taxation with the discretion not to use a taxpayer’s refund to offset old tax debts by amending current legislation.

The discretion will apply to individuals, small businesses and not-for-profits where the Commissioner had put that old tax debt on hold prior to 1 January 2017.

Superannuation-Related Measures


Superannuation on Paid Parental Leave

The Government announced it will pay superannuation on Commonwealth government-funded Paid Parental Leave payments from 1 July 2025.

For more information on these Budget announcements and potential planning opportunities, please do not hesitate to contact our office.

Disclaimer

The information provided in this article does not constitute advice.  The information is of a general nature only and does not take into account your individual situation.  It should not be used, relied upon, or treated as a substitute for specific professional advice.  We recommend that you contact Brentnalls WA before making any decision to discuss your particular requirements or circumstances. 

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OUR DIRECTORS

Chris Mandzufas

Chris Mandzufas

Chris has a diverse range of skills and experience as a result of providing accounting, taxation, advisory board and management consulting services to owners and directors of fast growing businesses.

Chris Smith

Chris Smith

Chris Smith has been a member of the Chartered Accountants Australia & New Zealand since 2006, a member of the Tax Institute of Australia since 2013, and a registered Tax Agent since 2018.

Tony Monisse

Tony Monisse

Tony’s key focus is the integration of strategy and financial management. To this end he has developed tools and process that facilitate this integration, including business modelling, target setting and rolling cash flow forecasts.

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