Expanding access to small business tax concessions
The Government will extend access to a number of small business tax concessions by increasing the threshold for these concessions to $10 million, up from the current $2 million threshold. This will provide over 90,000 businesses with access to a range of small business tax concessions.

From 1 July 2016, all businesses with annual turnover of less than $10 million will have access to:

• simplified depreciation rules, including immediate tax deductibility for asset purchases costing less than $20,000 until 30 June 2017 and then less than $1,000;

• simplified trading stock rules, giving businesses the option to avoid an end of year stocktake if the value of the stock has changed by less than $5,000;

• a simplified method of paying PAYG instalments calculated by the ATO, which removes the risk of under or over estimating PAYG instalments and the resulting penalties that may be  applied;

• the option to account for GST on a cash basis and pay GST instalments as calculated by the ATO; and

• other tax concessions available to small business currently, such as the Fringe Benefits Tax concessions (from 1 April 2017, the beginning of the next fringe benefits tax year) and immediate deductibility of professional expenses.

These threshold changes will not affect eligibility for the small business capital gains tax concessions, which will only remain available for businesses with annual turnover of less than $2 million or that satisfy the maximum net asset value test.

Lower taxes and expanded access to tax concessions will mean increased opportunity to grow a small business, employ more Australians and increase wages.