No scares in budget (if you’re doing the right thing) says BDO
02 April 2019
Nothing in tonight’s budget should scare the business community, that is if they’re doing the right thing, says accounting and professional services firm, BDO.
“It is hard to see anything much for business in this budget apart from the instant asset write-off,” says BDO tax partner, Mark Molesworth, “Additionally, the playing field might be levelled, with increased action by the ATO against those not doing the right thing.”
For those businesses falling short, their days are limited with the announcement tonight of increase in the tax avoidance task force funding and funding for Austrac; “That indicates that the ATO will be pushing hard on the anti-avoidance side”, continued Molesworth.
The immediate increase to the Instant Asset Write-off threshold is quite clever – set to $30,000 - a business can now buy a car under the scheme – making it more attractive. The scheme has been expanded to include businesses up to $50m turnover – the measure captures an extra 22,000 businesses.
As expected, news of individual tax cuts sounds positive from a headline perspective but they’re not as good as they first seem reports BDO. “Although the increases to the low and middle income tax offsets will come in for the current year (ending 30/6/19), the changes to the tax threshold and tax rates will be phased in over the next four years – potentially two or three elections away.”