Recently there have been changes to small business tax concessions and now more businesses can access them retrospectively from 1 July 2016:
● The small business turnover threshold increased to $10 million. This is the threshold the Australian Taxation Office (ATO) uses to help determine whether businesses can access small business concessions. Raising the threshold from $2 million to $10 million allows more businesses access to these concessions. There are some limitations that apply to the threshold increase, for example it does not apply to CGT concessions.
● The small business company tax rate reduced to 27.5% and now applies to businesses with a turnover of less than $10 million. It was previously 28.5% for businesses with a turnover of less than $2 million.
● The small business income tax offset increased to 8% (up to $1,000) and now applies to small businesses with a turnover of less than $5 million. This offset was previously 5% for businesses with a turnover of less than $2 million.
● The instant asset write-off. If you are a small business, you can immediately deduct the business use portion of most assets that cost less than $20,000. From 1 July 2016 businesses with a turnover of less than $10 million now have access to this concession.
Find out more about what your business can claim here.