ATO Rates and Thresholds

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https://www.hartpartners.com.au/wp-content/uploads/2019/08/HartPartners-ATO-RATES-AND-THRESHOLDS.pngEditor: The ATO has updated a number of rates and thresholds on their website, including the following.

Division 7A – Benchmark Interest Rate
The Division 7A benchmark interest rate for the 2020 income year is 5.37% (up from the rate for the 2019 income year of 5.20%).

Car Cost Limit for Depreciation
The maximum value taxpayers can use for calculating depreciation of cars is the car limit in the year in which they first used or leased the car.

In the 2019/20 income year, the car limit is $57,581, unchanged from the 2018/19 year.

Capital Improvement Threshold
The improvement threshold for the 2019/20 income year is $153,093, up from $150,386 for the 2018/19 income year.

SMSF LRBA Interest Rates
An interest rate of 5.94% charged by an SMSF in the 2020 income year under a limited recourse borrowing arrangement (‘LRBA’) to acquire real property would be consistent with the ATO’s safe harbour terms (or 7.94% for listed shares or units).

 

* * * Disclaimer: The information is sourced from NTAA. * * *
Many of the comments in this publication are general in nature and anyone intending to apply the information to practical circumstances should seek professional advice to independently verify their interpretation and the information’s applicability to their circumstances.

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