The ATO has recently reminded small businesses of the expanded tax concessions potentially available to them, as outlined below:
- The pending increase in the small business instant depreciating asset write-off to less than $25,000 (as discussed in further detail above).
- Accelerated depreciation deductions for primary producers for eligible fodder storage assets, as well as for fencing and water facilities.
- Assistance for primary producers impacted by drought at Drought Help, or by contacting the ATO on 1800 806 218.
- A lower company tax rate of 27.5% for companies qualifying as a Base Rate Entity (‘BRE’).
- Increased Small Business Income Tax Offset (‘SBITO’) for eligible sole traders and individual partners and beneficiaries.
Finally, the ATO has reminded taxpayers that more businesses are now eligible for most small business tax concessions.
Specifically, from 1 July 2016, a range of small business tax concessions became available to all businesses with an aggregated turnover of less than $10 million (i.e., the turnover threshold).
Previously the turnover threshold was less than $2 million. The $10 million turnover threshold applies to most concessions, except for:
- the SBITO – which has a $5 million turnover threshold from 1 July 2016; and
- the small business CGT concessions – which continue to have a $2 million turnover threshold.
Note: The relevant turnover threshold for accessing the lower company tax rate is $50 million from the 2019 income year (increased from $25 million in the 2018 income year).