Newsletter
December 2013 Newsletter
Tax changes following carbon tax and mining tax repeal
The Abbott government has introduced into Parliament proposed legislation to repeal the carbon tax and the mining tax.
Importantly, the Bill to remove the mining tax also proposes to repeal or revise a number of tax and superannuation measures. Key changes include:
capital allowances for small business entities – the instant asset write-off threshold will be reduced to $1,000 and the accelerated depreciation arrangements for motor vehicles will be discontinued;
company loss carry-back – the repeal of the loss carry-back measure will apply from the start of the 2013–2014 income year;
superannuation guarantee (SG) charge – the SG charge percentage will be paused at 9.25% for the years starting on 1 July 2014 and 1 July 2015, increase to 9.5% for the year starting on 1 July 2016, and then gradually increase by half a percentage point each year until it reaches 12% for years starting on or after 1 July 2021; and
low income superannuation contribution (LISC) – the LISC will not be payable in respect of concessional contributions made from 1 July 2013.