Government Stimulus Package Presented by: Duncan Barber

The Package aims to Minimize the impact of Global Financial crisis on our Economy. This presentation would cover the following Tax incentives, planning opportunities and eligibility criteria: Small & General Business Tax Bonus Pension Payment Concessions Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

Small & General Business Tax Bonus Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

Investment Allowance Extension of Bonus period - for all new contracts entered into from 18 Dec 08 to 31 Dec 09 – Purchase of new Equipment or expenditure to improve existing equipment One off Deduction of 30 % (previously 10%) – provided asset installed & ready to use by 30 June 2010 Deduction of 10% for assets purchased from 1 July 09 to 31 Dec 09 – Asset installed and ready to use by 31 Dec 2010  Small business (up-to 2 million pa turnover) – Bonus on equipment costing more than $1000  All other businesses, Bonus on equipment in excess of $10,000 Bonus deduction is on top of the normal depreciation deductions allowable and deduction claimable in the year the asset is installed ready for use Small and General Business Tax Bonus

Exclusions Assets excluded from Bonus  Land  Trading stock  Software  Capital Works  Intangible assets  Assets subjected to pre-existing special deduction provisions Cars are specially included as expenditure eligible for the bonus (limited to the luxury car depreciation limit) Small and General Business Tax Bonus

For example: Purchase of car:40,000 Contract Date:20 December 08 Delivery Date: 1 February 09 Tax Deductions Investment Allowance 12,000 Depreciation Prime Cost (12.5%) 2,083 5,000 5,000 5,000 Investment Allowance 12,000 Depreciation Diminishing 4,167 8,958 6,719 5,039 Value (25%) Small and General Business Tax Bonus Exclusions

Small & General Business Tax Bonus Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

Reduction of pension drawing to NIL for retirees drawing a monthly pension since 1 July 08 for period 1 January 2009 to 30 June Pensions will be re-instated in next financial year * Proposal only Pension Payment Concessions Reduction* of Mandatory Minimum Retirement Pensions ( by 50%) announced by the Federal Government

Do Nothing – Pensions will continue at their current rate If pensions already drawn over half the “normal” minimum, request to stop pension Reduce your pension payments to an amount lower than the mandatory minimum for remainder of the financial year * Proposal only Pension Payment Concessions Assuming the proposal becomes law: Available Options

Small & General Business Tax Bonus Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

Eligibility criteria:  You pay PAYG instalments quarterly using the amount calculated by ATO  You are carrying business and have an annual turnover of less than $ 2 million  Receive income from a partnership or trust that is carrying on a business that has an annual turnover of less than $ 2 million PAYG Instalment Reduction Tax concession to assist businesses – pay upto a 20% reduced PAYG instalment for Dec 08 quarter (due for lodgement on 3 March 09)

If you are eligible and have paid the full liability, AVAILABLE OPTIONS Do nothing Contact ATO to have the credit refunded or applied to your next liability PAYG Instalment Reduction This reduction applies only to PAYG instalments This reduction is not a variation of your PAYG instalments.

Small & General Business Tax Bonus Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

 Tax Bonus Payment  Single Income Family Payment  Back to School Payment  Training & Learning Payment  Farmer’s Hardship Payment One-Off Cash Bonus The FIVE key one-off cash payments Stimulus package passed through both houses and waiting for royal assent

Tax Bonus Payment  Lump sum payment of up to $900 to certain individuals who paid tax during the 2008 financial year.  Eligibility Requirement Australian Resident Tax liability on 2008 notice of assessment Income under $80,000 sliding to $100,000  Tax return must be lodged by 30 June 09 to receive this payment One-Off Cash Bonus

Single Income Family Payment  A payment of $900 will be made to families who rely on one main income earner including single parent families.  Eligibility Requirement Family eligible to receive FTB-B on 3 Feb 09 will receive the payment Back to School Payment  A payment of $950 per school aged child (4-18 years)  Eligibility Requirement Family entitled to receive FTB-A as at 3 Feb 09 One-Off Cash Bonus

Training and Learning Payment  A payment of $950 to eligible recipients to assist with Academic costs, split into 2 categories:  Payments to people eligible for youth allowance (student and apprentices), sickness allowance and special benefits, Austudy, Abstudy, VCES, MRCAETS and families entitled to FTA-A for each eligible full time student ages years  Second category applies to recipients of the Education Entry Payment, who will receive an additional payment on top of the $208 they would have received Farmer’s Hardship Payment – Farmers & Business operators dependent on agricultural income, eligible for any of the following on 3 Feb 09:  $950 will be paid by Centrelink from 24 March 09 to 6 April 09  Exceptional circumstances relief payments for farmers  Interim income support for farmers  Exceptional circumstances relief payments for small business  Interim income support for small business  Farm help income support One-Off Cash Bonus

Small & General Business Tax Bonus Pension Payment Concessions PAYG Instalment Reductions One Off Cash Bonus Balance of Stimulus Package

 Payments of up to $200,000 to every Australian School for maintenance and renewal of school  The construction of over 20,000 new dwellings for social and defence housings  The completion of maintenance to upgrade 2,500 vacant social houses  350 additional projects in the Black Spot roads program  Installation of appx 200 new boom gates at high risk rail crossings  Funding of $650 million for local community infrastructure and maintenance on National Highways  Installation of ceiling insulation in 2.7 million homes, which is estimated to cut around $200 per year of energy bills for these houses  Increased non means tested rebated for households to install solar and heat pump hot water systems to replace electric storage hot water systems. Balance of Stimulus Package

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