“Blackhole Expenditures” are often referred to as other capital expenditures or business related capital expenses. Section 40-880 deals specifically with these types of expenditure. Post announcement of 2015-2016 Federal Budget, certain costs incurred in starting up a business by small businesses and individuals can be immediately deducted. Costs such as getting advice or services relating to the structure or operation of the proposed business, for example, formation expenses are now fully deductible in the financial year when the expenditure is incurred. This new rule is effective from 1 July 2015. However, certain business related costs are to be claimed in equal portions over five years, examples are:
Tax Summary 2015 & 2016
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Business owners, if you have a small business with an aggregated annual turnover (the total normal income of your business and that of any associated businesses) of less than $2 million, be reminded that to utilise simplified depreciation rules with immediate write off (deduct) deprecating assets that cost less than $20,000 each, the assets must be purchased, used or installed ready for use before 30 June 2017. Under these rules, you:
If you choose to use the simplified depreciation rules, you must:
Source : ATO website We have recently moved to a global allocation model for processing cases. Please note allocation time and processing time can be different. When a case is allocated, it is assessed on that day. If the application is “assessment-ready” and no other processing is required, the application will normally be finalised on the allocation day. If the application is NOT “assessment-ready” and more information is needed to finalise it, the processing time will be longer. PROCESSING TIMES FOR APPLICATION PROCESSING TASKS The following table provides individual processing times for the different elements associated with finalising 457 applications. PLEASE NOTE:
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