This was a quiet budget for private clients, with no specific measures announced. However many measures mentioned elsewhere (for example, dropping the corporate tax cut) will have a significant impact on this sector of the economy. Many of the changes to personal taxes are also likely to impact significantly on small business.
One measure mentioned in the budget releases (though previously announced) is the small business write-off for assets worth less than $6,500. Under this measure, businesses which are small business entities (broadly those with less than $2 million turnover) can claim an instant tax deduction for each asset they purchase which is worth less than $6,500. Previously these assets would have been capitalised, with depreciation deductions claimed over a number of years.
Of course, private clients are already facing a huge number of changes to the tax landscape in the coming years. One of the most significant changes is the upcoming re-write of trust tax rules. No further details of this measure are included in the budget, but we expect further details from Treasury in the coming months.
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