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The Removal of the Carbon Tax Comes at a Price

Article By Adam Hurwood | | General News
As part of the repeal of the carbon tax (or Minerals Resource Rent Tax), the government has passed a number of other changes that will affect nearly all taxpayers. These changes are as follows:

Changes to Superannuation:

• Re-phasing of the change in rate of the superannuation guarantee charge. The rate will now remain at 9.5% until 1 July 2021 after which it will increase by 0.5% each year until it reaches 12% on 1 July 2025.

• Repeal of the low income superannuation contribution (LISC) will be in respect of concessional contributions made after 1 July 2017 (a 4 year delay from the budget announcement).

Changes Affecting Small Business:

• Loss carry back rules which allow companies to have prior year taxes paid refunded have been repealed with effect from the 2013/14 income year;

• Confirmation of the reduction in the small business instant asset write off threshold to $1,000 from 1 January 2014 (previously $6,500);

• Reduction in the low pool value threshold under which a small business entity may deduct the value of its small business pool to $1,000 from the 2013/14 income year (previously $6,500);

• Repeal of the special deduction for small business entities for motor vehicles costing $6,500 or more (i.e. immediate deduction of $5,000 and pooling of the remainder) from 1 January 2014.