A few changes have slipped into the budget and haven't attracted much attention:
1). A win....From 1 July 2015 business start-up costs will become deductible. Establishing a company, legal advice for establishing etc. That's great news.
2) A win...From 1st April a employee can access multiple electronic devices used for work purposes and its FBT exempt. This allows a iphone, ipad and MacBook for example. The former rule didn't consider similar items and allowed a sole device.
3) Boooo.....Changes to deductions for motor vehicles. This one may be nasty.
After 1 July 2015 vehicle deductions for business / personal use etc will be subject to 2 methods rather than the previous 4 methods.
OUT = 12% of cost method which avoided need for substantiation receipts and logbooks etc. ideal for older cars etc.
OUT = 1/3rd expenses method for people who didn't do a logbook.
So now its EITHER logbook or a 5,000km cap is placed on deductions under the cents per KM method. Ouch.
Tip : Start thinking of when you will do a logbook if you want to max deductions. Also retaining records of ALL vehicle costs. Many taxpayers may find deductions substantially cut for vehicle use or allowance deductions. This could also eave the employee with a unfunded tax bill.
1). A win....From 1 July 2015 business start-up costs will become deductible. Establishing a company, legal advice for establishing etc. That's great news.
2) A win...From 1st April a employee can access multiple electronic devices used for work purposes and its FBT exempt. This allows a iphone, ipad and MacBook for example. The former rule didn't consider similar items and allowed a sole device.
3) Boooo.....Changes to deductions for motor vehicles. This one may be nasty.
After 1 July 2015 vehicle deductions for business / personal use etc will be subject to 2 methods rather than the previous 4 methods.
OUT = 12% of cost method which avoided need for substantiation receipts and logbooks etc. ideal for older cars etc.
OUT = 1/3rd expenses method for people who didn't do a logbook.
So now its EITHER logbook or a 5,000km cap is placed on deductions under the cents per KM method. Ouch.
Tip : Start thinking of when you will do a logbook if you want to max deductions. Also retaining records of ALL vehicle costs. Many taxpayers may find deductions substantially cut for vehicle use or allowance deductions. This could also eave the employee with a unfunded tax bill.