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
This publication is intended as a general commentary only and does not purport to be comprehensive. It should not be regarded as tax advice and you should not act solely on the information contained herein. Please contact AscendPoint to further discuss about your circumstances or concerns.