Small Business Tax Concessions

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There’s still time for you to take advantage of small business tax concessions before the end of the financial year. If you act before 30 June, you can make the most of some concessions. For example:

  • Instant asset write-off: If you buy and install business assets by 30 June that cost less than $20,000 each, you can deduct the business portion in this year’s tax return.
  • Pre-paid expenses: You can claim a deduction this year if you prepay an expense that will end in the next financial year, for example, the rent for your business premises or an insurance policy.
  • Do you need to do a stocktake? If you estimate that the difference between your opening and closing trading stock is $5,000 or less, you don’t need to do a stocktake. Instead, you can include the same amount for your opening and closing stock in this year’s tax return.
  • Not-so-small list of small business concessions… Here is a list of the small business tax concessions that may be available to you.

Income tax

  • Lower company tax rate changes
  • Increased small business income tax offset
  • PAYG instalment concession

Deductions

  • Simplified depreciation rules – instant asset write-off
  • Accelerated depreciation for primary producers
  • Deductions for professional expenses for start-ups
  • Immediate deductions for prepaid expenses

Simplified record-keeping

  • Simplified trading stock rules
  • Two-year amendment period

GST, BAS and excise

  • Simpler BAS
  • Accounting for GST on a cash basis
  • Annual apportionment of GST input tax credits
  • Paying GST by instalments
  • Excise concession

Capital gains tax (CGT)

  • Small business restructure rollover
  • CGT 15-year asset exemption
  • CGT 50% active asset reduction
  • CGT Retirement exemption
  • CGT Rollover
  • Contributions of small business CGT concession amounts to your super fund

Fringe benefits tax (FBT)

  • FBT car parking exemption
  • FBT work-related devices exemption

Superannuation

  • Superannuation clearing house
  • Contributions of small business CGT concession amounts to your super fund.

Tip! Speak to your tax adviser to find out which concessions you can tap into.

 

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