Expanded access to small business concessions – From 1 July 2016, a range of small business tax concessions became available to all businesses with turnover less than $10 million (the turnover threshold). Previously the turnover threshold was $2 million.
Increase in instant asset write-off threshold to $20,000 – The threshold for instant asset write-off has been increased from $1,000 to $20,000 for small business owners with a turnover of less than $10M ($2M for the period from 12 May 2015 to 30 June 2016). This applies from 12 May 2015 to 30 June 2018.
Deductions for professional expenses for start ups – From 1 July 2015, small businesses are entitled to certain deductions when starting up a small business. This includes professional, legal and accounting advice and government fees and charges.
Fringe benefits tax changes for work-related devices – From 1 April 2016, small businesses will not incur a fringe benefits tax (FBT) liability if they provide their employees multiple work-related portable electronic devices that have similar functions.
Small business income tax offset – From the 2016–17 income year, an individual is entitled to a tax offset of 8% up to $1,000 each year on the tax payable on the portion of their business income. This applies to small businesses with turnover less than $5 million.
Company tax cut – For income years commencing on or after 1 July 2016, the small business company tax rate has been reduced from 28.5% to 27.5%.