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 $10Â 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 $2Â million.
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