UNCERTAINTY STILL REIGNS ON WHAT SMALL BUSINESS CAN CLAIM

There are a number of tax concessions on the chopping block including the loss carry back initiative, reduction in the small asset write-off and the ability to claim extra depreciation on motor vehicles.

These are measures associated with the repeal of the Mineral Resource Rent Tax (MRRT) and businesses are currently left in the shadows of uncertainty on what they can claim this financial year, according to the Institute of Public Accountants (IPA).

“It is not an ideal situation for people to have so much uncertainty about what they can claim as we head into tax return season,” said IPA chief executive officer, Andrew Conway.

“Once the MRRT repeal Bill is passed, these concessions have a retrospective start date.  In the case of the small asset write-off threshold, it is proposed to reduce from $6,500 to $1,000 from 1 January 2104.

“Whilst these tax concessions can legitimately be claimed this financial year, taxpayers will need to amend their returns if the legislation is passed.

“The Institute is urging small businesses to be cautious of what claims they make with the knowledge of the impending retrospective legislation still hanging over their heads,” said Mr Conway.