Department of Jobs and Small Business

I’m interested in tax measures for small business

The Australian Government is delivering tax reforms for Australian businesses. The reforms deliver tax relief for more than 3 million small and medium businesses.

Immediate deductions up to $20,000

Australian Taxation Office logo

Is this for my business?

  • My business has a turn-over of less than $10 million

The $20,000 instant asset write-off has been extended to 30 June 2019.

This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000.

If your business has a turnover of less than $10 million, you can instantly claim the business portion of most depreciating assets that cost less than $20,000 each.

You can claim the deduction through your tax return, in the year the asset was first bought and used or installed ready for use.

Assets of $20,000 or more can be put into a small business asset pool where you can claim a proportion of the amount as a deduction each year.

On 29 January 2019, the Prime Minister announced that the government will introduce legislation to increase the $20,000 instant asset write-off threshold to $25,000 from 29 January 2019 until 30 June 2020. This proposal is not yet law.

Learn more about the instant asset write-off

Tax cuts and concessions

Is this for my business?

  • My business has a turn over of less than $50 million
  • My business has a turn over of less than $5 million
  • My business entity turnover threshold has increased from 2 million to 10 million
  • I’ve just started my own business

Small business owners are eligible for the following tax cuts and concessions

  • If your business is incorporated, active and has a turnover of less than $50 million per annum, your business will move to a 25 per cent tax rate by 2021–22.
  • If your unincorporated small business has a turnover less than $5 million, the small business income offset is at 8 per cent, with a limit of $1,000 each year and will move to 16 per cent from 2021–22.
  • The small business entity turnover threshold has increased from $2 million to $10 million per annum, which means more small business owners have access to a range of tax concessions.
  • If you’re just starting up a small business, you can immediately deduct certain professional expenses incurred in establishing your new business. This can include costs for professional, legal and accounting advice.

Learn more about tax cuts and concessions

Or to find out what concessions you can access as a small business visit the ATO: Small Business concessions page

Simpler GST reporting online

Is this for my business?

  • My business has to report if goods and services have GST or not.

To save small businesses time and money, the Australian Taxation Office (ATO) has developed the Simpler BAS (Business Activity Statement), reporting solution.

  • GST bookkeeping and reporting is quicker and easier
  • Small businesses now only need to report on total sales, GST on sales and GST on purchases. Put simply, you only have to report if goods and services have GST or not.

Find out more about Simpler BAS

FOI Disclosure Log Information Publication Scheme

Last modified on Thursday 11 April 2019 [9746|113856]