Eligibility for some of these concessions will be dependent on satisfying some additional conditions. For more information refer to the links below.

 

> choice to account for GST on a cash basis

 

> choice to pay GST by quarterly instalments

 

> annual apportionment of GST input tax credits

 

> simplified trading stock rules – the ability to estimate the value of trading stock on hand at the end of each financial year when the change in value is estimated to be less than $5,000

 

> simpler depreciation rules – immediate write-off of assets below the threshold

 

> small business income tax offset

 

> CGT 15-year asset exemption

 

> CGT 50 per cent active asset reduction

 

> CGT retirement exemption

 

> CGT roll-over provisions

 

> choice to pay PAYG instalments based on GDP adjusted notional tax

 

> two-year period for amending assessments (exceptions may apply)

 

> immediate deductions for prepaid business expenses, where the payment covers a 12 month or less period that ends in the next financial year

 

> FBT car parking exemption (applies from 1 April 2007).

> Restructure rollover

 

> Tax relief on capital gains tax assets, trading stock, revenue assets transferred from one business structure to another (applies from 1 July 2016)

> Tax deduction for business start-up costs including professional legal and accounting advice (applies from 1 July 2015)

 

> the small business instant asset write-off threshold has been increased from $1,000 to $6,500

> the long-life small business pool and the general small business pool have been consolidated into the general small business depreciation pool to be written off at the rate of 30% (15% in the first year).

> small businesses can claim an immediate write off of the first $5,000 of any motor vehicle purchased after 1 July 2012. The remainder of the purchase price can be transferred into the general business depreciation pool.

Extra Bonus – If the balance of a pool after taking into account any additions and disposals, but before reducing it for any deductions, is below $6,500 but greater than zero you can claim a deduction for the remaining amount. The closing balance then becomes zero.

NB! If you also use depreciable assets to earn non-business income (such as salary and wages) you are also permitted to use the Simplified Depreciation Rules for those assets even though they are not used in the SBE. This does not apply to property that is subject to a depreciating asset lease, such as long term rental property assets.

For more information refer to the SBE Depreciation links below.

Changes which apply from 1 July 2007, have:

 

> introduced a single definition of small business for income tax, CGT, GST, PAYGI and FBT;

 

> aligned the turnover thresholds for all the concessions at $2 million;

 

> aligned the definition of annual turnover for income tax and GST;

 

> introduced new aggregation rules to prevent large business from splitting their activities in order to gain access to these small business concessions;

 

> allowed small businesses access to the small business CGT concessions without having to satisfy the net assets threshold;

 

> increased the net assets threshold from $5 million to $6 million for the small business CGT concessions for businesses that do not meet the $2 million threshold;

 

> removed the requirement to elect into the simplified tax system in order to gain access to those concessions, including the entrepreneurs tax offset; and

 

> increased the GST cash accounting threshold from $1 million to $2 million.