Tax rules to be repealed are company loss-carry back (1 July 2013), low income superannuation contribution (1 July 2013), income support bonus (1 July 2013), school kids bonus (1 January 2014) and capital allowances concessions. 
The capital allowances concessions will be scaled back as:-
- small business entities would be able to claim a deduction for the value of a depreciating asset that costs less than $1,000 (rather than the $6,500 before 1 January) in the income year in which the asset is first used or installed ready for use;
- small business entities would be able to claim a deduction for an amount included in the second element of the cost of a depreciating asset that was first used or installed ready for use in a previous income year, provided the amount is less than $1,000 (rather than $6,500 before 1 January);
- small business entities would be able to allocate depreciating assets that cost $1,000 (rather than $6,500 before 1 January) or more to their general small business pool and claim a deduction for the depreciation of the assets in the pool;
- assets allocated to the general small business pool will depreciate at a rate of 15% in the year in which they are allocated, and a rate of 30% in subsequent income years; and
- if the value of a small business entity's general small business pool is less than $1,000 (rather than $6,500 before 1 January) at the end of the income year, the small business entity would be able to claim a deduction for the entire value of the pool.
Motor vehicles would be subject to the same rules as other depreciating assets
15th-February-2014 | 