It has been a little quiet on the tax front in recent months. The following is an update of some of the changes affecting small businesses.
Company Tax Rate
As from 1 July 2015, the small business company tax rate has been reduced from 30% to 28.5%. In general terms, a small business is defined as having a turnover less than $2 million.
Start Up Expenses
Small business entities can claim certain start up expenses immediately as from 1 July 2015, such as:
- Obtaining advice relating to the proposed structure or operations
- Payments to Australian government bodies (e.g. company incorporation, stamp duty)
Small businesses can claim an immediate deduction for assets acquired from 12 May 2015 to 30 June 2017, where the cost of the asset is less than $20,000.
The balance of the general small business pool is also immediately deductible if the balance is less than $20,000 as at 30 June 2015, 2016 and 2017.
Please contact our office if you have any questions about your taxation affairs.