Key changes for attribution managed investment trusts

Small business energy incentive

The Treasury Laws Amendment (Support for Small Business and Charities, and Other Measures) Act 2024External Link provides businesses with an aggregated annual turnover of less than $50 million with access to a bonus deduction equal to 20% of the cost of eligible assets or improvements to existing assets that support more efficient energy use.

This is a temporary measure to support small businesses to improve their energy efficiency and save on energy bills. The bonus deduction applies to the cost of eligible assets and improvements up to a maximum amount of $100,000, with the maximum bonus deduction being $20,000.

Your clients need to complete label Small Business Bonus Deductions – Small Business Energy Incentive in the AMIT tax return and label Other Deductions in the AMIT tax schedule if they are claiming the bonus deduction.

For more information, see Small business energy incentive.

Small business – $20,000 instant asset write-off

The Treasury Laws Amendment (Support for Small Business and Charities, and Other Measures) Act 2024External Link provides a temporary increase to the instant asset write-off threshold to support small business entities (with an aggregated annual turnover of less than $10 million).

Eligible small business entities are able to immediately deduct the full cost of eligible depreciating assets costing less than $20,000 that were first used or installed ready for use for a taxable purpose between 1 July 2023 and 30 June 2024.

The $20,000 threshold applies on a per asset basis, so small business entities can instantly write off multiple assets. Small businesses can also immediately deduct an eligible amount included in the second element of a depreciating asset's cost.

The 5-year 'lock out' rule is suspended until 30 June 2024. This rule prevented small business entities from re-entering the simplified depreciation regime if they opted out.

Your clients need to complete label Total depreciation deducted for income year in the AMIT tax return and label Other Deductions in the AMIT tax schedule if you are claiming a deduction under instant asset write-off.

For more information, see Small business support – $20,000 instant asset write-off.

Thin capitalisation

The Treasury Laws Amendment (Making Multinationals Pay Their Fair Share – Integrity and Transparency) Act 2024External Link amends thin capitalisation rules for income years commencing on or after 1 July 2023.

Under the new thin capitalisation rules:

• The newly classified 'general class investors' will be subject to one of 3 new tests
  • Fixed ratio test
  • Group ratio test
  • Third party debt test.
• Financial entities will continue to apply the existing safe harbour test and worldwide gearing test or may choose the new third party debt test.
• Authorised deposit-taking institutions (ADIs) will continue to be subject to the existing thin capitalisation rules.
• The arm’s length debt test will be removed.

These rules are supported by the new integrity rules – debt deduction creation rules, which will apply to assessments for income years starting on or after 1 July 2024.

If your clients answered Yes at either of the questions about overseas transactions or thin capitalisation, they must complete and lodge an International dealing schedule.

For more information, see Thin Capitalisation.

New items in the AMIT tax return 2024

In the Attribution Managed Investment Trust tax return 2024, the following has been included:

• Small business bonus deductions – Small business energy incentive.

Removed items in the AMIT tax return 2024

In the Attribution Managed Investment Trust tax return 2024, the following labels have been removed:

• Capital allowances
  • Are you making a choice to opt out of temporary full expensing for some or all of your eligible assets?
    • Number of assets you are opting out for
    • Value of assets you are opting out for
    • Temporary full expensing deductions
    • Number of assets you are claiming for
• Small business bonus deductions – Small business technology investment boost.