Small business incentives extended

Date: 5 December 2017
Small business incentives extended
More businesses can take advantage of a $20,000 immediate write-off.
 
In March 2017, as part of Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016, the definition of a small business was changed to include those enterprises with an aggregated turnover of less than $10 million.
 
At the same time, the government was able to secure company tax cuts. These changes meant that from the 2016/2017 financial year, companies with an aggregated turnover of less than $10 million would be paying tax at the rate of 27.5 per cent, a 2.5 per cent reduction.
 
Companies with a turnover of up to $25 million would also receive the 2.5 per cent reduction to 27.5 per cent from the 1st of July 2017.
 
The changes also meant that concessions introduced during the May 2015 federal budget, which allowed small businesses with an aggregated turnover of less than $2 million to claim an instant asset write-off, would be extended to include those enterprises who met the new turnover threshold of less than $10 million. 

While these concessions were originally planned to end on the 30th of June 2017, the government has proposed that these changes will be extended by an additional year as part of the 9th of May 2017 federal budget.
 
Essentially this means more businesses will be entitled to deduct plant and equipment assets with a value of less than $20,000 immediately and for a longer period than initially planned.
 
Commercial property owners or tenants can consult with one of our expert staff for advice on how this ruling change will affect their depreciation deductions.
 
To learn more about claiming depreciation for a commercial property, visit bmqts.com.au
 
SOURCE: BMT Tax Depreciation
 
Run on regional shopping centres
 
The demand for regional shopping centres has cooled in recent months but the $14.5 million sale of the Victorian regional centre – Horsham Gateway shows there’s more life in this run yet.

A Chinese investor bought the new shopping centre, halfway between Melbourne and Adelaide, with the price paid reflecting a yield of around 7.7 per cent.
 
Leased to Target for 15 years, the centre also has five specialty stores and a gym operated by Snap Fitness. Built on a 12,040 square metre landholding, it has a further 2,020 square metres of surplus land ready for future expansion.
 
Apparently the Chinese buyer warded off competition from both a Singaporean fund and local private groups.
 
Chinese investors have spent more than $380 million buying shopping centres across Victoria over the past two years, demonstrating the strength of their ongoing apetite for well located assets backed by strong tenancy profiles such as Target, Coles and Woolworths.
 
SOURCE: realcommercial.com.au

 
Back to articles Filed under: Media / National News Tags: business, centres, chinese, commercial, enterprise, horsham, incentives, investors, off, shopping, small, tax, write
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