AFTA update

From AFTA’s chief executive, Jayson Westbury

IT IS but days till the end of the 2017 financial year and the official mid-point of the year. For those with an annual turnover of less than $10m a trip to JB-HiFi or Officeworks might be in order to take advantage of the asset write off scheme offered by the Federal Government.

If you buy an asset before 1 July 2017 and it costs less than $20,000, you can immediately deduct the business portion in your 2017 tax return. A car, a boat, a laptop, who knows. You are eligible to claim a deduction for the business portion of each asset (new or second hand) costing less than $20,000 if: you have a turnover less than $10 million (this has increased from $2 million), and the asset was first used or installed ready for use in the 2016-17 income year. Assets that cost $20,000 or more can’t be immediately deducted. They will continue to be deducted over time – depreciated. Of course, remember to check with your accountant to ensure you are eligible, but with just three days to go it might be worth a quick look if you have had a good year.

The other exciting thing that has been well reported but I make reference as it is something that AFTA has been advocating for a long time, is the withdrawal of the Green Departure Card. As of 01 July 2017 nobody will be required to fill out, nor will there be anywhere to drop the Green Departure card, saving a great deal of time and effort as people set off on their trips. For years this card has been included by travel agents in ticket wallets and airline staff have with a little grimes handed them out and we have all suffered the issue of completing them and handing them over. Well no more and good bye to this piece of paper as the Australian government brings our departure experience further into the next generation of thinking.

As the smart gates get smarter and the process gets faster, it is very exciting to think about what is coming in the next couple of years. Australian Border Force tells us that perhaps the passport will become a document you keep in your pocket and your face will be all you need (of course you will always have that with you) to be processed.

And we should all be looking forward to the next phase of arrival technology as well, with some further enhancements in the pipeline. The Orange Arrival card will remain for the foreseeable future.

On a final note, I was informed last week that the Passport Office issued 2 million passports last year, a record year. This means there are more Australians than ever before equipped to take an overseas holiday as they have a passport and will want to use it. We should be looking at a strong second half of 2017 and I hope wherever you sit in the travel value chain, you get your piece of the action.