Small Business Accounting & Tax Concessions
If you are a small business there a number of tax concessions and advantages which you will be able to use to your benefit. There are conditions to be met however.
A small business satisfies the eligibility criteria being you carry on a business and your business turnover (aggregated turnover) is less than $2 million. To satisfy the turnover test the following must be met.
Aggregated turnover is your annual turnover plus the annual turnovers of any business entities you are connected with or are your affiliate. These are referred to as relevant business entities.
Concessions AvailableIncome tax concessions
Simplified trading stock rules
If the value of trading stock has not increased or decreased by more than $5,000 over the year, it is up to the small business owner do an end-of-year stocktake
Simplified depreciation rules
Small business can generally pool assets to make depreciation calculations easier and also claim an immediate deduction for most assets costing less than $1,000 each.
Immediate deductions for prepaid expenses
There is an immediate deduction for prepaid expenses where the payment covers a period of 12 months or less that ends in the next income year.
Small business and general business tax break
You can claim an additional tax deduction when your business bought eligible assets, and when you spent money to improve eligible assets, subject to certain time limits and thresholds.
Two-year amendment period
Small business generally have a two-year time limit (from the day that the Commissioner issued your notice of assessment) for reviewing an assessment.
Please contact us for further information