Small Business Tax Concessions - Businesses with turnover of less than $50m.
Immediate deduction for certain start-up expenses
From 1 July 2020, eligible businesses can immediately deduct a range of professional expenses and Australian government agency payments associated with starting a new business, such as professional, legal and accounting advice. Currently, these costs are usually deducted over a five year period.
Immediate deduction for certain prepaid expenditure
From 1 July 2020, eligible businesses can immediately deduct certain prepaid expenditure where the payment covers a period of 12 months or less that ends in the next income year. Currently, business expenditure that relates to multiple income years is generally not immediately deductible.
Fringe benefits tax (FBT): small business car parking exemption
From 1 April 2021, eligible businesses would be exempt from FBT on car parking benefits provided to employees if the parking is not provided in a commercial car park.
FBT: multiple work-related portable electronic devices exemption
From 1 April 2021, eligible businesses would be exempt from FBT on multiple work-related portable electronic devices provided to employees - even if the devices have substantially identical functions.
Simplified trading stock rules
From 1 July 2021, eligible businesses can choose to use a simplified trading stock regime. Under this regime, eligible businesses may choose not to conduct a stocktake (and account for changes in the value of the trading stock) for an income year, if the difference between the opening value of the stock on hand and a reasonable estimate of stock on hand at the end of the year does not exceed $5,000.
Pay as you go (PAYG) instalments based on GDP-adjusted notional tax
From 1 July 2021, eligible businesses would have the option to have their PAYG instalments calculated for them by the ATO (based on previously reported information). Currently, they are required to calculate their actual income for the period, as the basis for their PAYG instalment calculation.
Small business excise concession
From 1 July 2021, eligible businesses would be able to apply to defer settlement of excise duty to a monthly reporting cycle, instead of the current weekly reporting cycle. This only applies to eligible goods under the current small business entity concession.
Small business excise-equivalent customs duty concession
From 1 July 2021, eligible businesses would be able to apply to defer settlement of excise-equivalent customs duty from a weekly to monthly reporting cycle. This only applies to eligible goods under the current small business entity concession.
Two-year amendment period
Eligible businesses (excluding entities with significant international tax dealings or particularly complex affairs) will have a two-year amendment period apply to income tax assessments for income years starting from 1 July 2021. The current exceptions, including for fraud or evasion, would continue to apply. Businesses can lodge an amendment application before the time limit and the ATO may extend the time limit to give effect to the application. Currently, they are subject to a four-year amendment period.
Simplified accounting methods
From 1 July 2021, the Commissioner of Taxation's power to create a simplified accounting method determination for eligible businesses for GST purposes will be expanded.