19/05/17 10:47 Filed in: Tax
As in previous years I have prepared a brief summary of the tax consequences of the Budget 2017 for our clients. I have avoided going into too many details that you probably already have read in the papers, or the changes to Medicare which your professional organisation is bound to explain in much clearer detail.
SOME POINTS OF BUDGET MEASURES AND CONSEQUENCES FOR OUR CLIENTS
- Reduction of corporate tax rate for trading entities with a turnover under $50M.This reduction will NOT be available for investment companies, only for trading businesses. All up the effect for doctors is therefore minimal or non-existent.
- Definition of ‘small business’ now includes businesses with turnover up to $10M for most measures (except Small Business CGT Concessions...). This is very relevant for practices with gross billings over $2M but under $10M, as they now can access the accelerated depreciation concessions, including the $20,000 immediate write off.
- CGT exemption for Principal Place of Residence will no longer be available for non residents from 1 July 2019 onwards. Non resident means non resident for tax purposes, so this could potentially affect an Australian doctor working for a few years overseas who for whatever reason wants to sell his home, whilst overseas. Don’t do this without discussing with us first!
Current clients were emailed the full seven point summary of Budget 2017 in our most recent newsletter. Please see this document for more details.