As the end of financial year nears and planning for the new one is in full swing, we thought it would be a great time to update you on what is changing from 1 July 2020:

  • Company tax rate reduces to 26% for base rate entities

  • $150k instant asset write-off scheduled to reduce back to $1,000 for small business entities and will no longer be available for entities with aggregated annual turnover of $10m or more, although accelerated depreciation rules apply to certain entities until 30 June 2021

  • Cents per km rate for work-related car expenses increase to 72 cents

  • Expected reforms to allow 66 and 67 years olds to make voluntary superannuation contributions without satisfying the work test. This reform is not yet law.

  • Age limit for making superannuation contributions to your spouse increases from 69-74. This reform is not yet law.

  • For those 67 and under, reforms will enable you to use the ‘bring forward rule’ to make up to three years of non-concessional contributions. That is, you can make non-concessional contributions of up to $300,000 from the 2020-21 financial year.

If you have any questions or need more information, please don’t hesitate to contact us