Posted on June 10, 2020
What’s changing on 1 July?
There are important changes coming on July 1 that may impact you. Please review the points below:
- 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.
- Age limit for making superannuation contributions to your spouse increases from 69-74.
- 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.
Do any of these changes affect you? If you have any concerns reach out to the HCG team so we can guide you through what’s right for you. Book your meeting here.