Other Business measures
Other Budget measures affecting various parts of the business sector are summarised below.
Accelerated depreciation for primary producers: From 1 July 2016 primary producers will be able to immediately
- deduct capital expenditure on fencing and water facilities (such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills); and
- depreciate over three years all capital expenditure on fodder storage assets (such as silos and tanks used to store grain and other animal feed).
Immediate deduction for professional expenses: From 1 July 2015 businesses will be able to immediately deduct a range of professional expenses associated with starting a new business; including legal and accounting advice on establishing a company, trust or partnership. Currently these expenses are deducted over five years.
Fringe Benefits Tax meal and entertainment concessions for Non-for-profit employees to be capped: From 1 April 2016, a single grossed-up cap of $5,000 will be introduced for salary sacrificed meal entertainment and entertainment facility leasing expenses for employees of certain non-for-profit organisations. Amounts in excess of the cap will be counted towards the standard Fringe Benefits Tax exemption caps for other benefits. All meal entertainment benefits will become reportable for the calculation of various surcharges.
Goods and Services Tax (GST) extended to offshore supplies of services and intangibles to Australian consumers (‘Netflix tax’): The Government intends to introduce changes so that Goods and Services Tax will apply to the purchase of digital products and services from overseas suppliers from 1 July 2017.
This will bring Australia into line with the European Union which has implemented similar changes with effect from 1 January 2015.
Employee Share Schemes: As part of the Mid-Year Economic and Fiscal Outlook 2014-15 the Government released draft legislation to implement changes to the taxation of employee share schemes. The changes were to re-introduce the deferral of taxation on employee shares and options arrangements and the introduction of new concessions for small start-up companies. Some minor amendments to make schemes more accessible were identified during consultation. The proposed legislation including the minor amendments will take effect from 1 July 2015.