The tax rate for small business entity companies has been reduced to 27.5% for the 2017 financial year, down from 28.5% in the 2016 year.<\/p>\n
To be eligible for this rate, you need to be considered a \u201csmall business entity.\u201d To meet this definition, you must:<\/p>\n
\u25aa operate a business for all or part of the income tax year, and<\/p>\n
\u25aa have an aggregated turnover less than $10m<\/p>\n
All other companies continue to be taxed at 30%<\/p>\n
The small business turnover for most concessions has increased from $2m to $10m.<\/p>\n
Individual small business taxpayers are entitled to 8% discount (increased from 5%) of the income tax payable on the business income received from a small business entity (other than a company), up to a maximum of $1,000 a year, with the aggregated turnover test being increased from $2m to $5m. This concession only applies to tax payers running a small business rather than merely receiving personal services income.<\/p>\n
An immediate deduction is still available for an asset costing less than $20,000 acquired and first used or installed ready for use on or before 30 June 2017.<\/p>\n
The balance of the general small business pool is also immediately deducted if the balance is less than $20,000 at 30 June.<\/p>\n
From 1 July 2016, a small business entity can transfer active assets from one entity to one or more other entities without incurring a tax liability. Please contact us if you are considering restructuring your small business entity.<\/p>\n
Businesses have the choice to self-assess the tax effective life of intangible assets (e.g. patents, copyrights) acquired after 1 July 2016, or to continue using the existing statutory effective life.<\/p>\n","protected":false},"excerpt":{"rendered":"
Income Tax Changes \u2013 Small Businesses Tax Rates The tax rate for small business entity companies has been reduced to 27.5% for the 2017 financial year, down from 28.5% in the 2016 year. To be eligible for this rate, you need to be considered a \u201csmall business entity.\u201d To meet this definition, you must: \u25aa…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-13986","post","type-post","status-publish","format-standard","hentry","category-news"],"yoast_head":"\n