Department of Employment, Skills, Small and Family Business

I’m interested in tax measures for small business

The Australian Government is delivering tax reforms for Australian businesses. The reforms deliver tax relief for more than 3 million small and medium businesses.

Immediate deductions up to $30,000

Australian Taxation Office logo

Is this for my business?

  • My business has a turn-over of less than $50 million

The instant asset write-off threshold has been increased to $30,000 and extended to 30 June 2020.

If you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use from 7:30pm AEDT on 2 April 2019, you can claim a deduction for the business portion.

Different thresholds apply for assets purchased before that date:

  • from 29 January 2019 until before 7.30pm AEDT on 2 April 2019, the threshold is $25,000
  • before 29 January 2019, the threshold is $20,000.

You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.

Assets of $30,000 or more can be put into a small business asset pool where you can claim a proportion of the amount as a deduction each year.

The instant asset write-off has also been expanded to include businesses with a turnover from $10 million to less than $50 million.

Learn more about the instant asset write-off.

Tax cuts and concessions

Is this for my business?

  • My business has a turn over of less than $50 million
  • My business has a turn over of less than $5 million
  • My business entity turnover threshold has increased from 2 million to 10 million
  • I’ve just started my own business

Small business owners are eligible for the following tax cuts and concessions

  • If your business is incorporated, active and has a turnover of less than $50 million per annum, your business will move to a 25 per cent tax rate by 2021–22.
  • If your unincorporated small business has a turnover less than $5 million, the small business income offset is at 8 per cent, with a limit of $1,000 each year and will move to 16 per cent from 2021–22.
  • The small business entity turnover threshold has increased from $2 million to $10 million per annum, which means more small business owners have access to a range of tax concessions.
  • If you’re just starting up a small business, you can immediately deduct certain professional expenses incurred in establishing your new business. This can include costs for professional, legal and accounting advice.

Learn more about tax cuts and concessions

Or to find out what concessions you can access as a small business visit the ATO: Small Business concessions page

Simpler GST reporting online

Is this for my business?

  • My business has to report if goods and services have GST or not.

To save small businesses time and money, the Australian Taxation Office (ATO) has developed the Simpler BAS (Business Activity Statement), reporting solution.

  • GST bookkeeping and reporting is quicker and easier
  • Small businesses now only need to report on total sales, GST on sales and GST on purchases. Put simply, you only have to report if goods and services have GST or not.

Find out more about Simpler BAS

FOI Disclosure Log Information Publication Scheme

Last modified on Thursday 22 August 2019 [9746|120082]