AUS: Small Business Entity Concessions

Australian Tax Office

Small businesses can access a range of concessions including payment and reporting options. This applies to sole traders, partnerships, companies or trusts.

To qualify for these concessions, you’ll need to determine if your business is a ‘small business entity’ for the income year. You must review your eligibility each year.

Expanded access to small business concessions

From 1 July 2020 – businesses that are not small businesses because their turnover is $10 million or more but less than $50 million can also access an immediate deduction for certain start-up expenses and for prepaid expenditure.

From 1 April 2021 – the turnover threshold for FBT concessions will increase to $50 million.

From 1 July 2021 – businesses that are not small businesses because their turnover is $10 million or more but less than $50 million may also be eligible to access these small business concessions:

  • simplified trading stock rules
  • PAYG instalments concession
  • a two-year amendment period
  • excise concession.

Past information below:

From 1 July 2016, you are a small business entity if you are a sole trader, partnership, company or trust that:

  • operates a business for all or part of the income year, and
  • has an aggregated turnover less than $10 million (the turnover threshold)

From 1 April 2017, the turnover threshold for fringe benefits tax (FBT) concessions increased to $10 million.

The $10 million turnover threshold applies to most concessions, except for:

  • the small business income tax offset, which has a $5 million turnover threshold
  • the capital gains tax (CGT) concessions, which continue to have a $2 million turnover threshold

For previous income years, you are a small business if your turnover is less than $2 million.

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