02 Nov 1111 Stronger, Fairer, Simpler and Other Measures Tax Bill 2011 introduced
On 2 November 2011, Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Bill 2011 was introduced into the House of Representatives.
The following is extracted from the Explanatory Memorandum to the Bill.
SCHEDULE 1 to the Bill repeals Subdivision 61-J — 25% entrepreneurs’ tax offset of the ITAA 1997, abolishing the entrepreneurs’ tax offset. This measure applies for the 2012-13 income year and later income years.
SCHEDULE 2 to the Bill amends the ITAA 1997 by:
- increasing the small business instant asset write-off threshold from $1,000 to $6,500; and
- consolidating the long life small business pool and the general small business pool into a single pool to be written off at one rate.
The date of effect of Schedule 2 is as follows:
- Part 1 of Schedule 2 - the increase in the instant asset write-off threshold from $1,000 to $5,000 and the simplified pooling arrangements - commences on the later day of Royal Assent of the Bills giving effect to the Minerals Resource Rent Tax and of Royal Assent of this Bill.
- Part 2 of Schedule 2 - the increase in the instant asset write-off threshold from $5,000 to $6,500 will commence after the commencement of Part 1of Schedule 2 to this Bill and Royal Assent of the Clean Energy Bill 2011.
SCHEDULE 3 to the Bill amends the ITAA 1997 to allow small business entities to claim an accelerated initial deduction for motor vehicles acquired in the 2012-13 and subsequent income years. These amendments will commence on the day the Bill receives Royal Assent.
SCHEDULE 4 to the Bill amends the Superannuation (Government Co-Contribution for Low Income Earners) Act 2003 to provide for the low income superannuation contribution. These amendments apply to the eligible concessional contributions of an individual for a year starting on 1 July 2012. These amendments are dependent on the passing of the Minerals Resource Rent Tax package.