Fantastic News, there is an increase to the aggregated turnover threshold to $10 million for access to small business tax concessions from 2016-17. This means that any businesses with an aggregated turnover of under $10 million can now access a raft of concessions previously only accessible to small businesses under $2 million. The main concession left out is access to the small business CGT concessions, which still requires the entity to pass a $2 million turnover test or a $6m net asset value test.
There are progressive reductions in the corporate tax rate for businesses with a turnover under $50 million. Businesses with an aggregated turnover of less than $10 million will benefit from a company tax reduction to 27.5% this financial year.
For unincorporated businesses such as sole traders, partnerships and trusts there is an increase to the aggregated turnover threshold to $5 million (up from $2 million) for access to the small business income tax offset from 2016-17, and an increase to the unincorporated small business tax discount to 8% from 2016-17. The offset will be capped at $1,000.
The piece de resistance is an immediate tax write off for assets less than $20,000 for those businesses with less than $10 million turnover. This has just been extended in the Budget to 30 June 2018. This is not gold but for us accountants, advising our clients, it comes close
Pat Mannix, Partner, Paris Financial
Follow me on Twitter @mannix_pat