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. |
1 April 2021 |
|
Multiple work-related portable electronic devices exemption |
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:
Source: CCH iKnow