Legislation is expected to pass soon in parliament that will make it easier for many businesses to qualify for the small business concessions that were previously only available to those with an aggregated turnover below $2m.

Once the legislation is passed, businesses whose aggregated turnover does not exceed $10m will have access to many of the same benefits held by their smaller counterparts, allowing them to tap in to a range of tax concessions and hence free up vital funds. Even better, the Bill will be retrospective, meaning that the benefits will apply for the whole of the 2016-17 financial year.

Some benefits that will be available to those who qualify for the increased threshold under the small business rules are as follows:

·         Instant asset write-off for assets costing less than $20,000 purchased during the 2016-17 financial year.

·         Deductions for professional expenses for start-up and small business rollover when restructuring.

·         Small business income tax offset for unincorporated entities.

·         Company income tax for small businesses dropping to 27.5% in 2016-17, and then down to 25% over the 

  next ten years.

Additional concessions may also be available to you depending on eligibility. These are:

·    Income Tax Concessions including simplified trading stock rules, an immediate deduction for prepaid 

 expenses and a two-year amendment period.

·          PAYG Instalment Concessions allowing taxpayers to pay a pre-set quarterly amount.

·         Fringe Benefits Tax Concessions for car parking and work related devices.

·         Super Concessions allowing you to use a small business superannuation clearing house.

·         GST & Excise Concessions allowing you more flexibility.

However, the current threshold for access to the small business capital gains tax concessions  will remain unchanged at $2m.

Please note that regardless of eligibility, the use of these concessions is optional.

Good news all round for many of you, giving you added flexibility, better cash flow and more simplified processes so that you can get on with the business of running your business. At KDA Group, we're all about helping you to maximise your potential, and this includes making the most of tax concessions available to you. If you think you might need some assistance, we're only a phone call away on 4861 8383.