From 1 July 2012 changes to the financial supply provisions of the GST law will come into effect, which clarify the legislation and reduce compliance and administrative costs.
The measures include:
- increasing the first part of the financial acquisitions threshold from $50,000 to $150,000
- allowing small businesses, that account on a cash basis, to access full input tax credits upfront when they enter into hire purchase agreements
- excluding bank deposit accounts from the current special rules for borrowings.