From 1 July 2014:

employers with 20 or more employees started making contributions using SuperStream – they have up to 12 months to make the change.

From 1 July 2015:

small employers (with 19 or fewer employees) will start making contributions using SuperStream – they will have up to 12 months to make the change.

Employers can meet SuperStream by either using:

a software solution that conforms to SuperStream, or

a service provider who can arrange SuperStream compliance on your behalf.

Your options may include:

- upgrading your payroll software

- using an outsourced payroll or other service provider

- using a commercial clearing house; or, for employers with 19 or fewer employers, using the free Small Business Superannuation Clearing House

Your default fund – they may also have an electronic channel they manage or can make transitional arrangements for you.

You will need to collect and store additional information about funds in order to send them contributions in accordance with the SuperStream standard.

Temporary Accelerated Depreciation for Small Business Assets costing less than $20,000 The Government will significantly expand accelerated depreciation for small businesses by allowing small businesses with aggregate annual turnover of less than $2 million to immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000 (currently, an immediate write-off is generally available for assets costing less than $1,000). This measure will apply for assets acquired and installed ready for use between 7.30pm (AEST) 12 May 2015 and 30 June 2017. The Government also announced that it will suspend the current 'lock out' laws for the simplified depreciation rules until 30 June 2017. The ‘lock out’ rules prevent small businesses from reentering the simplified depreciation regime for five years if they opt out. Assets valued at $20,000 or more (which cannot be immediately deducted) will continue to be placed in the small business simplified depreciation pool (the pool) and depreciated at 15% in the first income year and 30% each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools). From 1 July 2017, the thresholds for the immediate depreciation of assets and the value of the pool will revert back to existing arrangements.

Broadly, small businesses with an aggregated annual turnover of less than $2 million will be eligible for the following concessions: Small Business Tax Cuts These tax cuts will be available from the 201516 income year. 28.5% Tax Rate for ‘Small’ Companies The Government will reduce the company tax rate from 30% to 28.5% for small companies with an aggregated annual turnover of less than $2 million. Companies with an aggregated annual turnover of $2 million or above will continue to be subject to the current 30% rate on all their taxable income. Importantly, the current maximum franking credit rate for a distribution will remain unchanged at 30% for all companies, maintaining the existing arrangements for investors, such as selffunded retirees. 5% Discount on Tax Payable by Unincorporated Small Businesses Individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $2 million will be eligible for a small business tax discount. The discount will be 5% of the income tax payable on the business income received from an unincorporated small business entity. The discount will be capped at $1,000 per individual for each income year, and delivered as a tax offset. Immediate Deduction for Professional Expenses The Government will allow businesses to immediately deduct a range of professional expenses associated with starting a new business, such as professional, legal and accounting advice. Currently, some professional costs associated with a new business start-up are deducted over a five year period. This measure will apply from the 201516 income year. CGT Rollover Relief for Changes to Entity Structure From 1 July 2016, small businesses with an aggregated annual turnover of less than $2 million will be allowed to change their legal structure without attracting a CGT liability at that point. CGT rollover relief is currently available for individuals who incorporate but all other entity type changes have the potential to trigger a CGT liability. This measure recognises that new small businesses might choose an initial legal structure that they later find does not suit them when the business becomes more established.