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2012 Tax Changes - Entrepreneurs tax offset

Saturday, July 28, 2012

Entrepreneurs’ tax offset

Last year, the government announced the entrepreneurs’ tax offset would be scrapped in order to help fund the $5,000 deduction for any vehicle purchase – that will take effect from next month.

The offset provided businesses an offset equal to 25% of the income tax payable on business income. While the move is a disappointing one for small business, it was only available for entrepreneurs earning less than $75,000 a year.

On the upside, businesses will now be able to access an immediate $5,000 deduction for all vehicle purchases from next month.

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