Businesses with an annual turnover of less than $2 million may be able to access a range tax concessions. This applies whether you operate your business as a sole trader, partnership, company or trust.
You will generally qualify for the small business entity concessions if your business’ aggregated turnover is less than $2 million. Your aggregated turnover includes the turnover of any entity you are connected with or that is an affiliate of yours at any time during the year.
Once you’ve worked out if your business is eligible you may choose one or more of the tax concessions that suit your business.
INCOME TAX CONCESSION
Simplified trading stock rules
You can choose not to conduct a stocktake or account for any changes in the value of your trading stock if there is a difference of $5,000 or less between the value of your opening stock and a reasonable estimate of your closing stock.
Simplified depreciation rules
An immediate deduction can be claimed for assets costing less than $1,000. Generally assets costing more than $1,000 can be pooled to make depreciation calculations easier.
Immediate deductions for prepaid expenses
Prepaid expenses can be claimed immediately where the payment covers a period of 12 months or less.
If you would like more information on small business entity income tax concessions please contact our skilled staff on (07) 5538 0999.