Small Business and tax issues for the 2016 Australian Financial year at the launchpad meetup event in july, 2015.

1. Small
business
tax
issues
2015
/
2016
Jeff
Funnell
–
RightWay
Australia
Sydney | July 2015

2. Agenda
–
small
business
tax
breaks
• $20,000
instant
asset
write
off
• Tax
rate
cut
to
28.5%
• Immediate
write
off
access
for
start
ups
• CGT-­‐roll
over
relief
for
changes
to
entity
structure
• Changes
to
employee
share
schemes

3. Instant
asset
write
off
• What
is
it?
– businesses
with
an
annual
aggregated
turnover
under
$2m
can
claim
an
immediate
deduction
for
purchases
under
$20k
– applies
until
30
June
2017
• Who
is
eligible?
– businesses
with
an
annual
aggregated
turnover
under
$2m
– the
business
must
be
actively
trading

4. Instant
asset
write
off
• What
is
covered?
– any
(eligible)
asset,
new
or
second
hand,
involved
in
running
a
business.
– first
acquired
at
or
after
7:30pm,
12
May
2015,
and
first
used
or
installed
ready
for
use
on
or
before
30
June
2017.
• What’s
not?
– assets
over
$20k
– ineligible
assets
including
certain
horticultural
plants
and
software
developed
in
house
– artificial
or
contrived
arrangements

5. Tax
cuts
for
small
business
• 1.5%
cut
for
small
companies
• Available
from
2015/16
income
year
• Dividends
can
be
franked
up
to
a
maximum
of
30%

6. Tax
cuts
for
small
business
• Proposed
change
• 5%
tax
discount
on
income
from
unincorporated
small
business
activity
• Aggregated
annual
turnover
of
less
than
$2m
• Capped
at
$1,000
per
individual
per
income
year

7. Tax
cuts
for
small
business
• Proposed
change
• Small
businesses
can
deduct
a
range
of
professional
expenses
associated
with
starting
a
new
business,
available
from
the
2015/16
income
year.

8. CGT
rollover
relief
for
changes
to
entity
structure
• Proposed
change
• Proposed
measure
to
allow
small
businesses
with
an
aggregated
annual
turnover
of
less
than
$2m
to
change
legal
structure
without
attracting
a
CGT
liability.
• Changes
will
apply
from
2016/17
income
year.

9. Employee
Share
Schemes
Overview
• Employees
given
shares
or
opportunity
to
purchase
shares
in
their
employer’s
company
• Great
way
to
attract,
retain
and
motivate
staff
• Unattractive
taxing
point

10. Employee
share
scheme
changes
Key
changes
• Applies
from
1
July
2015
• Changes
to
when
the
employee
is
taxed
on
the
value
of
the
share
or
option
for
start
up
companies
• Employee
can
hold
/
control
up
to
10%
of
shares
in
the
employer
company
• Tax
deferred
scheme
has
increased
to
15
years

11. Employee
share
scheme
changes
What
constitutes
a
start
up
company?
• Unlisted
company
• Aggregate
turnover
not
more
than
$50m
• Company
less
than
10
years
old
• Employer
is
an
Australian
resident

12. Employee
share
scheme
changes
• Start
up
concession
conditions
– Intent
to
hold
options
held
for
at
least
3
years
– Discount
must
be
no
greater
than
15%
(shares)
– Exercise
price
not
less
than
market
value
(options)
– safe
harbour
methodology
available,
if
certain
conditions
met

13. Employee
share
scheme
changes
• Standardised
ATO
documentation

14. Just
who
are
RightWay?
Just who are RightWay?
Jeff Funnell + Tim Fairweather | Sydney | July 2015

15. We are business advisors operating from an
accountancy platform where we provide regular
financial reports throughout the year to help SME
business owners make better decisions to help
them grow.
Just who are RightWay?
Jeff Funnell + Tim Fairweather | Sydney | July 2015

16. • Fastest
growing
(3
years
/
55s
/
800c)
• Built
to
scale
(NZ,
Aus
and
beyond)
• Out
to
lead
the
industry
• We
started
with
“what
does
the
customer
want”?
• 100%
Xero
–
100%
Cloud

17. Questions?