The Government has passed an Act to increase the aggregated turnover threshold for some small business concessions from $10 million to $50 million. Under the legislation, the definition of a small business will remain unchanged. However, for the tax concessions listed in the table below, an entity is able to substitute a new aggregated turnover limit of $50 million.
The table below lists the summary of the measures involved (including links to more information), and when they will come into effect:
Measure
Brief description
Date of effect
Simplified accounting methods
Eligible entities can have access to simplified accounting methods for GST.
1 July 2021
Excise-equivalent customs duty
Eligible entities can defer settlement of excise-equivalent customs duty, for eligible goods, to a monthly reporting cycle. Other businesses are generally required to report on a weekly cycle.
1 July 2021
Excise duty
Eligible entities can defer settlement of excise duty, for eligible goods, to a monthly reporting cycle. Businesses that are not small business entities are generally required to report on a weekly cycle.
1 July 2021
Car parking exemption
Car parking benefits provided by an eligible employer to an employee will be exempt from fringe benefits tax where certain conditions are met.
Multiple work-related portable electronic devices, that have substantially identical functions, provided to employees by their eligible employers will be exempt from fringe benefits tax.
1 April 2021
Immediate deduction for prepaid expenditure
The eligible business entity can choose to deduct the full amount of prepaid expenditure relating to a service that will be provided across income years for a period of 12 months or shorter but that ends in the following income year.
1 July 2020
Limited amendment period
The Tax Commissioner may amend the eligible entities’ income tax assessment for up to a limited period of two years.
1 July 2021
Immediate deduction for certain start-up expenses
The eligible business entity can deduct certain expenditure relating to the structure or operation of a business in the income year in which the expenditure is incurred, rather than over five years.
1 July 2020
Simplified trading stock rules
Eligible business entities to choose not to conduct a stocktake of trading stock for an income year if the difference between the value of stock on hand at the start of the year and the reasonable estimate of the value of stock at the end of the year is not more than $5,000.
1 July 2021
PAYG instalments based on GDP-adjusted notional tax
Eligible business entities can elect to have their PAYG instalments calculated for them by the ATO as a quarterly payer who pays on the basis of GDP-adjusted notional tax.
1 July 2021
There is no change to the following concessions for small businesses:
access to the small business income tax offset
access to small business CGT concessions and small business restructure rollover
access to the superannuation clearing house, and
access to contributions of small business CGT concession amounts to the corresponding super fund.
