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Cashflow+Networks

Federal Budget 2019/20

April 9, 2019 | Posted in Blog | By


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From the desk of Christopher Emmanuel

I have read the Federal Budget 2019/20 proposal, tax section only, and I have to say that I like what I saw.

Since I am an accountant and tax agent, this article about the budget was filtered to the tax proposal only. Overall, the lower and middle-income earners are the focus of this tax budget.

Maximum tax offset will be increased up to $1,080 for income up to $90k and will be gradually decreased to $0 for income between $90k to $126k.

With the base lower income tax offset of $255, this means tax free taxable income is effectively $19,500 instead of $18,200.

The new targeted offset will benefit over 10 million low- and middle‑income earners

The other major proposal that I really like is the simplification of the Australian Tax Bracket system (Progressive Tax System). Proposed, if elected, in 2024/25, they will abolish the 2nd largest tax bracket, 37%, and increased the 2nd level tax threshold to $200k, up from $37k in 2017/18.

Now unto Small Business. We also win big time, with the proposal to fasten the reduction of tax rate for small business corporate entity from 27.5% to 25% five years earlier. Who wouldn’t want that?

The only downside with the reduction of the tax rate, with the current law, the franking rate can only be maxed to the rate of the current tax rate applied. So if there were a small business who have paid 30% tax rate, they will not be able to distribute the difference as an imputation credit to the dividend being paid, thus this will create a massive excess franking account balance, which will never get distributed. The only time this will ever be distributed is when the government increases the tax rate again or the small business entity received 80% of its income from passive investments, thus putting them back to the 30% tax rate.

Also, from 1/07/2019, the Government increases the threshold for SBE Immediate Write-off to $30,000. This is a great news for a lot of small business entities but still my advice, just because there is this tax break, you will still need to judge wisely whether you will need to spend $30k just to reduce your tax.

In conclusion, I like what I being proposed in the budget and hope that we all can benefits from this.

Kind regards

Christopher Emmanuel


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Government Scraps $500k Super Lifetime Limit

September 15, 2016 | Posted in Blog, Superannuation | By


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From the desk of Christopher Emmanuel

I was disappointed when the government put the new measurement against the superannuation in the last budget. From our view, this is a very limiting move by the government in the name of making sure that it is not misused.

I am glad that the government notice that this is a bad move and it will not give a positive results. Today they have announce that they are scraping the super 500k lifetime limit measurement and changing it to $100k limit per year and 3 years bring forward limited to those with balance up to $1.6 million.

I believe this is a more fair measurement and should be received with the most welcome hands. Although I prefer the old measurements but this is still a good thing rather than the government making super as a very not attractive vehicle for people to use.

Kind regards

Christopher Emmanuel

Related external articles/news:

  1. SelfManaged Super – Govt scraps $500k super cap: https://goo.gl/MQARwE
  2. SkyNews – Government scraps $500k superannuation cap: https://goo.gl/wjVVnJ
  3. Daily Telegraph – Superannuation reform: Government to scrap $500,000 cap: https://goo.gl/m1M5bH
  4. Financial Observer – Govt scraps $500K lifetime cap: https://goo.gl/aGwVRU

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Do you have a new client with prior years overdue?

April 10, 2015 | Posted in Australian Taxation Office | By


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Taking on a new client doesn’t need to affect your on-time lodgment performance. We have lodgment deferral options to help your new clients with one or more years of overdue returns.
Source: Australian Taxation Office – Business News


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Get involved – live webcast for BAS agents, 30 April

April 8, 2015 | Posted in Australian Taxation Office | By


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Connect with other BAS agents in a live webcast and discuss changes affecting you and your profession. You can ask questions to a panel that includes your peers, the Tax Practitioners Board, a professional association representative and us. Find out when and how you can participate.
Source: Australian Taxation Office – Business News


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Open forums

April 8, 2015 | Posted in Australian Taxation Office | By


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Open forums allow us to engage with you about matters affecting you and your practice. They provide an opportunity to meet with us, in your area to have open discussions.
Source: Australian Taxation Office – Business News


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Have your say on GST for property

April 8, 2015 | Posted in Australian Taxation Office | By


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Interested in GST for property? Now is the time to join our online discussion thread. Your feedback will help to guide our activities and future initiatives. Join the conversation now.
Source: Australian Taxation Office – Business News


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Greater certainty in relation to fund mergers

April 8, 2015 | Posted in Australian Taxation Office | By


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The law has been amended to ensure that superannuation fund members are not disadvantaged where an involuntary roll-over superannuation benefit occurs.
Source: Australian Taxation Office – Business News


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Seeking your feedback: infrastructure and privatisation

April 7, 2015 | Posted in Australian Taxation Office | By


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The privatisation and infrastructure project team is currently seeking feedback on the issue of when a power of veto can constitute negative control for the purposes of section 102N of Division 6C of the Income Tax Assessment Act 1936.
Source: Australian Taxation Office – Business News


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Important changes that affect your AUSkey

April 7, 2015 | Posted in Australian Taxation Office | By


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Find out about upcoming changes that may affect your AUSkey and what you can do to ensure your access to our online services isn’t impacted.
Source: Australian Taxation Office – Business News


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Involuntary rollover of superannuation benefits – new law

April 2, 2015 | Posted in Australian Taxation Office | By


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New law for the involuntary rollover of super benefits starts on 1 July 2015.
Source: Australian Taxation Office – Business News


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