Written by Bibek Nepal, Senior Manager
Small business entity can access a range of small business concessions.
Some of the most relevant concessions for financial year 2016-17:
Instant asset write-off
- You can claim immediate deduction for the business portion of most of the assets costing less than $20,000 and were purchased on 12 May 2015 and 30 June 2017.
Immediate deductions for Pre-paid expenses
- You can claim immediate deduction for prepaid expenses if the payment covers a period of 12 months or less that ends in the following income year.
Certain Start-up expenses
- You can claim immediate deduction for certain start-up costs of small business like professional, legal and accounting advice, government fees and charges etc.
Simplified trading stock
- You can estimate the value of your trading stock at the end of the financial year to report in your tax return (You don’t need to conduct a stock take).
Certain FBT exemptions
- Small businesses will not have a fringe benefits tax liability if they provide their employees multiple work-related portable electronic devices that have similar functions and used primarily for work such as laptops, tablets, calculators, mobile phones etc.
Small business income tax offset
- An individual is entitled to a tax offset of 5% up to $1,000 on the tax payable on the portion of their income that is from small business income from sole trading activities or a share of net small business income from a partnership or trust.
Company tax cut for small businesses
- Small business company tax rate has been reduced from 30% to 28.5%.
Capital gains tax
- You may be eligible for the capital gains tax (CGT) concessions on assets used to conduct your small business.
Superannuation clearing house services
- You can use the small business superannuation clearing house to pay super guarantee contributions for your employees if you have 19 or fewer employees.
Liability limited by a scheme approved under Professional Standards legislation