There are a range of tax concessions available to businesses that meet the definition of a small business entity.
A small business entity has aggregated turnover less than $2 million.
Some of the concessions were previously only available as a package to businesses in the simplified tax system. From the 2007-08 income year onwards, the simplified tax system no longer operates and the concessions are now available individually to small business entities.
If you were previously in the STS, you can continue to use the concessions if you are a small business entity. You are no longer required to use all the concessions – you can choose to use those that best suit your business requirements.
The income tax concessions available are the:
entrepreneurs’ tax offset
simpler depreciation rules
simpler trading stock rules
immediate deductions for prepaid expenses, and
2 year amendment period.
For information about the other concessions available to small business entities see www.ato.gov.au/SBconcessions
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