New CGT tax benefit for business owners?

[GIDDO]

Hi all,
I heard about 5 words on the radio about CGT tax being "quarantined"?
Then I bought a Courier Mail and read their 16 page Budget liftout; and could find nothing about it?
Maybe I am just showing my maleness in that I could not find it?

Anyone here know anything about changes to the wau CGT works for business?

 

[geoffw]

I'd heard about changing of depreciation.

This article has a summary of changes to business. There is mention of improved access to CGT relief- I don't know what that means.

 

[aef]

http://www.treasurer.gov.au/tsr/content/pressreleases/2006/038.asp

This link might explain the detail your are after.

 

[Smile]

A lift in the diminishing value rate for depreciating assets from 150 per cent to 200 per cent.

Does this mean the depreciating assets in a new IP bought from today will have a changed depreciating schedule?

.

 

[GIDDO]

http://www.treasurer.gov.au/tsr/content/pressreleases/2006/038.asp

This link might explain the detail your are after.

Thank you AEF very much. I went and read that. My head bulged a bit at first but I think some of it is going in now!

 

[geoffw]

A lift in the diminishing value rate for depreciating assets from 150 per cent to 200 per cent.

Does this mean the depreciating assets in a new IP bought from today will have a changed depreciating schedule?

These changes apply to businesses- presumably not to individuals.

 

[depreciator]

It will be a week or so before all the nitty gritty of the budget filters out. Right now it's just what the media are reporting.

It's my understanding that this is a legislative amendment that relates to residential properties, too. It all goes through Parliament tonight. It will not be opposed. Once it all goes through, there will be lots more detail.

Press refences refer to 'business', but people like us owning properties are in effect carrying out a business. The change will be to the depreciation regime.

It's an attempt to stimulate spending by getting people to buy items of Plant (Depreciating Assets/fixtures and fittings)

It will apply to items bought after May 10.

Apologies if I'm being a bit vague. Believe me, I'm less vague than the ATO when I spoke to them yesterday and today. They said: 'It will be a week or so before anybody tells us.'

Given that this is good news for property investors, I can't work out why the government isn't shouting about it.

Scott

 

[Francesco]

I think there is a hope in the government's ranks that the budget handouts will not lead to rate rises, which will nullify the effect of the handouts. If they publicise how good depreciations will be to the residential market, it may accelerate this market again and it will cause the RB to raise rate again.

 

[Apocalypse]

Makes the double deduction laptop scenario a profit making exercise...

 

[Smile]

It's an attempt to stimulate spending by getting people to buy items of Plant (Depreciating Assets/fixtures and fittings)

It will apply to items bought after May 10.

Apologies if I'm being a bit vague.


Scott

depreciator ,
I hope you meant FROM May 10 not after May 10.

(As I signed a contract on the 10th.)

.

 

[aef]

In Luck

Hi Smile,

Looks like you are in luck.

The attached link states that assets purchased on are after May 10 are included.

http://www.treasurer.gov.au/tsr/content/pressreleases/2006/041.asp

Regards
A