Small Business Tax
Oct 7th, 2020 • Industry News
Small Business Tax
Access to up to 10 small business tax concessions will be extended to taxpayers with aggregated turnover of less than $50m
The expanded concessions will apply in three phases over the 2021- and 2022-income years
New FBT concessions and reduced FBT compliance obligations for employers
Expanding access to small business tax concessions
This measure extends access to 10 small business tax concessions for businesses with aggregated turnover of less than $50m (previously only available to businesses with aggregated turnover of less than $10m).
The expanded concessions will apply over three phases:
From 1 July 2020, eligible businesses will be able to immediately deduct certain start-up expenses and certain pre-paid expenditure.
From 1 April 2021, eligible businesses will be exempt from the 47% FBT on car parking and multiple work related portable electronic devices, such as phones or laptops provided to employees.
From 1 July 2021: eligible businesses will:
- be able to access the simplified trading stock rules that do not require annual stocktakes or to account for changes in trading stock values
- remit PAYG instalments based on GDP adjusted notional tax
- if they are a brewer or distiller, be able to report and pay excise duty and excise-equivalent customs duty monthly on eligible goods, rather than weekly to help assist managing cash flow
- be exposed to a reduced two year (currently four year) tax assessment amendment period (excluding entities that have significant international tax dealings or complex affairs) for income years starting from 1 July 2021
In addition, the Commissioner’s power to create a simplified method accounting determination for GST purposes for eligible businesses will be expanded to apply to businesses with aggregated turnover of less than $50m.
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