Businesses have to pay tax on their net profit. This type of tax is not covered in VCE Accounting so you do not need to understand the details. However, because you are business/commerce students, you may be interested. This week, the Treasurer, Joe Hockey, announced that businesses can "write-off" non current assets up to a vaule of $20 000 in the year of purchase. No need to depreciate the asset over its useful life. The asset becomes an expense! This would not fit the VCE Study Design. The impact is to reduce net profit by say $20 000 which means less tax (the tax that is not covered by the VCE) is paid by the business. Businesses like this. They will purchase more assets and stimuate economic activity which could cause more empployment and income multiplier effects.
The following article is useful:
http://www.abc.net.au/news/2015-05-13/budget-2015-small-business-tax-break-explained/6466066
No comments:
Post a Comment