Small business can access a number of tax concessions. A business body can be
- Individual
- Partnership
- Company or
- Trust
The total turnover of business should be less than aggregate $ 2 million throughout financial year. The benefits can include
- Simplified Depreciation rules
- In simplified depreciation rule, small businesses can immediately write off their assets valued at less than $20,000.
- Simplified trading stock rules:
- In small business, they got the benefit that if there existing stock value doesn’t go up or down by more than $ 5000,then they can have the facility not to do stock take at the end of year instead of that they can add same stock value as at the start of year.
- Car parking and FBT Exemption:
- Small businesses are exempted car parking benefits if providing for their employees but certain conditions apply.
- Business should have less than 10 million turnover in last financial year before the relevant FBT year.
- Should not public listed company and government body.
- GST choice on a cash basis:
- For eligible businesses they are only responsible to calculate GST once payment received (Cash basis accounting)
- In small business situation, they are eligible for concession Pay-as-you-go where they can pay quarterly installments that would worked out as most recently paid tax.
- Deductions for certain prepaid business expenses:
Deductions are only helpful to offset against tax. If business not earning any profit and facing loses it could not get much benefit because the current year looses are carrying forward to next year that’s why cannot claim any deductions in current financial year.
If the business type is included in Simplified Tax System, which is intended for small business concessions can claim concessions if business gather the eligibility criteria.
For more information on Etax, myTax ATO and online tax return, please contact us at 1300768284 or you can email us at enquiry@taxrefundonspot.com.au