Tax and Super: What’s changing on 1 July?
Here is a summary list of the tax and super changes that come into effect on 1 July.
- Company tax rate reduces to 26% for base rate entities
- $150k instant asset write-off scheduled to reduce back to $1,000 for small business entities and will no longer be available for entities with an aggregated annual turnover of $10m or more, although accelerated depreciation rules apply to certain entities until 30 June 2021
- Cents per km rate for work-related car expenses increase to 72 cents
- Expected reforms to allow 66 and 67 years olds to make voluntary superannuation contributions without satisfying the work test. This reform is not yet law.
- Age limit for making superannuation contributions to your spouse increases from 69-74. This reform is not yet law.
- For those 67 and under, reforms will enable you to use the ‘bring forward rule’ to make up to three years of non-concessional contributions. That is, you can make non-concessional contributions of up to $300,000 from the 2020-21 financial year.
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You can find out more about our business accounting services, including tax returns, superannuation, financial compliance, strategy and structure and more by clicking here. Or if you're interested in learning about our personal accounting services then please click here.
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If you'd like help with understanding your obligations or any further information, please contact us today.
