The 'have a go' budget - 2015

Highlights can be seen below but for the full response (PDF) please click here.

This is a highly targeted Budget that seeks to keep change within community tolerance levels.

Most spending measures target productivity gains - although small businesses with turnover between $2m and $5m will be disappointed. Revenue measures target the asset or income rich, or just plain unpopular.

Accelerated depreciation across multiple areas

  • Micro business - immediate deductibility from Budget night for any assets purchased and used
  • or installed and ready to use by 30 June 2017 that cost less than $20,000
  • Start ups – immediate deductibility for professional expenses – cost of lawyers and accountants
  • to get a business up and running
  • Farmers – immediate deductibility for fencing and water facilities
  • Tax cuts for small business (under $2m) from 1 July 2015
  • 1.5% company tax reduction
  • 5% tax discount for unincorporated small businesses
  • GST on digital supplies
  • Similar GST treatment applied to supplies of digital products to Australian consumers –
  • including consulting and professional services – regardless of whether they are supplied by a
  • local or foreign supplier
  • Individuals
  • Changes to work related deductions for car expenses – 12% of original value and one third of
  • actual cost methods removed and simplification of cents per kilometre method
  • FBT changes
  • Changes to salary sacrificed meal entertainment for not for profits
  • Expansion of FBT exemption for work related electronic devices provided by small businesses
  • Multinationals targeted
  • Changes to Part IVA target around 30 global companies with revenue in excess of $1bn
  • Accessing government benefits
  • Changes to how superannuants’ income counted for social security
  • Child care shake up - Collapses three current eligibility tests with one means and activity test
  • Asset test changes mean 91,000 pensioners no longer qualify and 235,000 will have pension
  • reduced
  • ‘Double dipping’ Government and employer paid parental leave stopped
Q22015, Taxation & Accounting, Business DevelopmentCristy Houghton