December 2023 & January 2024 Newsletter
Please click on the following link to view this month's newsletter for December 2023 - January 2024. We would like to highlight the following articles:-
$20,000 instant asset write-off for small business: beware timing
Legislation is currently before Federal Parliament that proposes to allow an immediate deduction for assets acquired by a small business entity costing less than $20,000 (excluding GST) that are first used or installed ready for use for a taxable purpose during the period from 1 July 2023 to 30 June 2024.
The $20,000 threshold will apply on a per-asset basis, so small businesses will be able to instantly write off multiple assets.
The instant asset write-off rules are available to entities that meet the definition of “small business entity” and where the entity carries on a business with an aggregated turnover of less than $10 million.
Depreciating assets that cost $20,000 or more are allocated to the general small business pool and can then be deducted at the rates of 15% in the year the asset is allocated to the pool and 30% in subsequent years. Please note that you must meet the definition of a small business entity to utilise the simplified depreciation rates.
ATO pauses “debts on hold” awareness campaign
In response to negative community feedback, the ATO has announced it is pausing its “awareness campaign around tax debts on hold”. The purpose of the letters was to ensure people had full visibility of their existing debts with the ATO.
Tax debts on hold are debts that the ATO is not taking active steps to recover. When a tax debt is put on hold, a taxpayer is informed in writing that while the ATO will not currently pursue the debt, the debt remains payable should a credit or refund arise or if the ATO believes that you now have the capacity to pay.
The ATO will undertake a review into its overall approach to debts on hold before progressing any further.
Please do not hesitate to contact us if you have any queries in relation to your tax and accounting matters.