Tax changes for 2021
There are several tax changes for the 2021 tax year. They include:
If you have bought an asset for your business between 17 March 2020 and 16 March 2021 the threshold for treating it as an expense has been increased from $500 to $5000. From 17 March 2021 the threshold has been increased permanently to $1000.
Depreciation on commercial (not residential) buildings has been restored. If you have bought a building since the Government cancelled the right to claim depreciation, we will need to split the cost of the property between land and buildings. We will need evidence of their value. The rates demand could be useful.
Please be sure to identify any wages subsidy you received due to Covid-19. The money received was not subject to GST. We will need to know how much was received by the owners of a business because that money has yet to be taxed.
If you have bought an asset for your business between 17 March 2020 and 16 March 2021 the threshold for treating it as an expense has been increased from $500 to $5000. From 17 March 2021 the threshold has been increased permanently to $1000.
Depreciation on commercial (not residential) buildings has been restored. If you have bought a building since the Government cancelled the right to claim depreciation, we will need to split the cost of the property between land and buildings. We will need evidence of their value. The rates demand could be useful.
Please be sure to identify any wages subsidy you received due to Covid-19. The money received was not subject to GST. We will need to know how much was received by the owners of a business because that money has yet to be taxed.