Set out below is important information regarding tax concessions available to small businesses – an overview from the editor of our latest Small Business Tax Concessions Guide – 5th Edition.
The major changes that occurred in the area of small business tax concessions were announced last year in the 2016/17 Federal Budget. These proposed changes have now become cemented as law, with many applying from 1 July 2016 and are further explored in this new edition of the title.
Access to most of the small business tax concessions has expanded. A range of small business tax concessions are now available to businesses with aggregated turnover of less than $10m — previously $2m. These concessions include:
- Company tax rate cuts for small businesses
- Simplified depreciation rules – including the instant asset write-off threshold of $20,000 which has been extended until 30 June 2018
- Simplified trading stock rules
- Option to account for GST on a cash basis and pay GST by instalments as calculated by the ATO
- Simplified method of paying PAYG instalments worked out by the ATO
- Various other tax concessions such as FBT car-parking and work-related devices exemptions for small business employers
- Simplified GST reporting is also now available so that from 1 July 2017, a small business with a GST turnover of less than $10m can use the Simpler BAS reporting method.
The Small Business Tax Concessions Guide – 5th Edition covers these concessions and more, including the small business CGT concessions, and the concessions which may provide incentives for small business owners to invest in superannuation. The Guide provides you with comprehensive and practical information to help you understand the conditions that must be satisfied for a particular concession to apply and how the concession will work in practice.