Legislation has been introduced into parliament as part of the “Mining Tax Repeal Bill” that from 1 January 2014 the immediate tax deduction for an individual asset costing less than $6,500 ex GST will be reduced to $1,000. Also applicable from 1 January 2014 the accelerated depreciation tax deduction of $5,000 ex GST for new or second hand motor vehicles acquired will also be reduced to $1,000..
As the legislation at this point of time has not been passed the higher immediate tax deduction are still applicable. We will be using the lower amounts in anticipation of the legislation being passed. In the event that the new legislation does not pass through parliament we will amend the tax returns affected.