14 Sep 11 Exposure Draft – Small business tax law amendments
In media release No 2011/130, issued 13 September 2011, the Assistant Treasurer and Minister for Financial Services and Superannuation, Bill Shorten, announced the release for public consultation of exposure draft legislation and explanatory materials for proposed amendments to the small business depreciation rules, including:
- increasing the small business instant asset write-off threshold from $1,000 to $6,500;
- allowing small businesses to write-off all other depreciating assets in a single depreciation pool at a rate of 30% (currently, small businesses allocate assets to two different depreciation pools, with two different depreciation rates (30% and 5%)); and
- allowing small businesses to claim up to $5,000 for motor vehicles acquired from the 2012-13 income year.
The exposure draft legislation also amends the tax law to abolish the entrepreneurs' tax offset.
All amendments have effect from the 2012-13 income year.
The closing date for submissions is Wednesday, 28 September 2011.