KEY TAX CHANGES FOR 2019

Companies and Small Business

• lower corporate rate of 27.5% for companies with turnover < $50m and have no more than 80% of their assessable income from passive income
• immediate write off for assets less than $25,000  to 30.06.2020….

Individuals

• Car expenses cents per kilometre rate increased to 68 cents….

DOES AUSTRALIAN HAVE AN ESTATE TAX?

The answer is no but effectively there is a death tax on superannuation benefits paid out to non-dependents

FAME AND NAMING RIGHTS

Taxation of income for an individual’s fame or image, which will apply from 1 July 2019. The measure aims to ensure that all remuneration (including payments and non-cash benefits) provided for the commercial exploitation of a person’s fame or image will be included in the assessable income of that individual.

ISSUES FOR SENIOR AUSTRALIANS

The funds that are allocated to the surviving member takes him/her over the $1.6 million limit which poses the question as to whether these funds should be retained in Superannuation. Although tax on funds in accumulation is only 15%, we need to consider the following…………….