What Tax Concessions Are Available For Small Businesses?

Depending on your specific circumstances, these may or may not be relevant for you.

It is always important to make the most of what you can claim for your small business. The truth is that majority of your business expenses are tax deductible. As a general rule for staying within your legal requirements, but getting as much tax returned as possible, follow these tips:

  • The expense must have been for your business. Not for private use.
  • If the expense is for a mix of business and private use, you can only claim the portion that is used for your business.
  • You must have the records to prove the expense and show how you worked out the business portion.
  • Check to see if you are eligible for any concessions to enhance your tax return potential.

There are a few concessions that are relevant for small businesses. Depending on your specific circumstances, these may or may not be relevant for you.


Small business income tax offset

This offset can reduce your tax bill by up to $1,000 if you run a business as a sole trader, partnership or trust. Though, it can only be applied if you have a turnover of less than $5 million. The small business offset is separate from the low and middle income tax offset, which you may also be eligible for.

Obtaining this offset is simple. You should report your net small business income in your individual tax return, and the tax office can automatically calculate the offset amount you’re eligible for. It will be automatically included in your assessment.

Lower company tax rate

If you operate your business as a company, you may be eligible for the lower company tax rate of 27.5%. This is

Before using this rate, check whether your business is a ‘base rate entity’. This depends on your company’s aggregated turnover and how much of its income is passive.

Deduction concessions

There are many concessions you can use to deduct expenses in full, rather than deducting them over a number of years. For example, you can do this with the instant asset write-off and concessions for start-up expenses.

If you bought an asset for your business that cost less than $30,000, you might be able to claim the whole expense as a deduction, using the instant asset write-off.


The best way to ensure that you are maximising your tax return is by getting in touch with one of our tax champions. As experienced small business accountants, we can do everything in our power to ensure that you are financially set for success.


Contact us today to arrange a free initial consultation where we can show you how much tax you could be saving.

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