• Business and Investment

Business and Investment

► Craft brewers and distillers get a break

As part of the 2018-19 Federal Budget, the Government has introduced new measures to level the playing field for Australian craft brewers and distillers. Eligible Australian alcohol producers will be able to claim a refund on 60%of the excise duty paid up to a cap of $100,000 per financial year. The change will take effect from 1 July 2019 and represents a significant increase from the current cap of $30,000 per financial year.

► Instant asset write-off for small business extended for 12 months

The Government will extend the current instant asset write-off for Small Business Entities (SBEs) that it introduced in the 2016 Budget by 12 months to 30 June 2019. The threshold amount was due to return to $1,000 on 1 July 2018.

► Overhaul of the R&D tax incentive

As predicted, the Government has announced a number of proposed changes to overhaul the R&D tax incentive. These changes are based on the recommendations that came out of its 2016 review of the R&D tax incentive and the subsequent ‘Australia 2030: Prosperity through Innovation Report’ released in January this year by the Board of Innovation and Science Australia (ISA).

► Taxation of tax exempt entities

Periodically, entities that have previously been income tax exempt can transition to operate in the same manner as traditional business taxpayers. 

► Simplifying tax consolidation

The Government has simplified two previously announced tax consolidation integrity measures.

► Expanding the definition of a large multinational

How a large multinational, or ‘significant global entity’ (SGE), is defined is of special importance as the ATO requires certain additional compliance measures from SGEs. It is proposed to expand the definition of an SGE to include a few more types of group structures in order to ensure that certain large multinational companies are not falling through the cracks under the current definition of an SGE.

► Taxation of Financial Arrangements (TOFA) changes deferred

TOFA changes announced in the 2016-17 Federal Budget have been deferred.

► Skill shortages at a time of a stronger economy and lower unemployment

With the ongoing growth in demand for temporary and permanent entry to Australia, in 2018–19 the Department of Home Affairs will administer revenue from Visa Application Charges of over $2 billion, an increase of almost $400 million over the previous year. With over 30,000 visa applications being lodged with the Department each day, the focus is on protecting and managing Australia's borders.