Your accountant can help you legally maximise your tax return
Here are some changes you may want to keep in mind:
- Changes to the tax-free threshold for low-income earners
From 1 July 2012, the tax-free threshold increased to $18,200, and the low-income tax offset reduced to $445. A low-income earner’s effective tax-free threshold is now $20,542.
- Faster initial deduction for small businesses buying motor vehicles
From the 2012-13 income year small businesses can claim an accelerated initial deduction for motor vehicles used in their business. In the first year, the cost of the motor vehicle is added to the general pool but, unlike other assets, the deduction is $5,000 plus 15% of the remaining cost of the motor vehicle.
- Instant asset write-off increased for small business
From the 2012-13 income year the small business instant asset write-off threshold has increased from $1,000 to $6,500.
- Concessional superannuation deduction of $25,000
From 1 July 2012, the maximum amount of concessional contribution can be made is $25,000.