News brought to you by small business accountants
As your business accountants in Surry Hills it is our duty to keep you up to date with the latest developments. The latest is that as part of the rather drastic budget measures required by the current Government to narrow the budget deficit it has been decided that there will be a limit placed on the total amount of income tax deductions an individual is able to claim in their annual personal tax return. Claims for self-education expenses will be limited to a maximum of $2,000.00 per tax year effective from July 2014. The education expenses that can be claimed include expenses for travel to and from conferences as well as tuition fees and materials and supplies. The government claims that the average deduction is only $905.00 so this will not impact on a large number of taxpayers, hence their reason for targeting this particular deduction. It is claimed that the $2,000.00 limit will save the Federal piggy bank $520 million per year over the budgets forward estimates. Those hardest hit will be those in the professional services industries where professional development is compulsory in order to maintain registration with professional bodies, as well as those on lower incomes trying to improve their skill sets to improve their employability.
Those fortunate enough to operate their own businesses will remain unaffected as they pay for staff training from the business accounts and don’t claim deductions personally.
Let’s hope that these changes don't put undue pressure on small business to now pay for their staffs training expenses, rather than letting staff improve their own skills and claim a tax credit on their annual income tax return.
For more news on small business changes, and trust me there will be plenty of them as we approach budget time and then also in the lead up to the Federal election in September this year, stay tuned to our small business dedicated webpage and newsletters throughout the year.
For any questions on the above contact us your small business accounting firm.