Small business entities
For the 2007–08 and later income years, new streamlined provisions for small business entities have replaced the former STS provisions. Access to the former STS concessions has been retained for small business entities.
Broadly, a small business entity is a business with an annual aggregated turnover of less than $2 million.
Read Small business entities for more information.
Carbon sink forests
Tax Laws Amendment (2008 Measures No. 1) Bill 2008 was introduced into parliament on 12 February 2008.
At the time of printing these instructions, this Bill had not become law. The Bill proposes to provide concessional treatment for costs of establishing carbon sink forests by allowing:
- an immediate deduction for a five-year period (commencing 1 July 2007), and
- from 1 July 2012 onwards, a capital write-off at the rate of 7%, commencing from the start of the income year in which the trees are established and ending 14 years and 105 days later.
The information on our website at www.ato.gov.au will be updated once the Bill becomes law. You can also phone the Business Infoline.
2008 Budget announcement
Capital gains tax (CGT) – extension of small business concessions
The Government announced that it will legislate to increase access to the small business CGT concessions for:
- taxpayers owning a CGT asset used in a business by a related entity, and
- partners owning a CGT asset used in a partnership business.
These changes will take effect from the 2007-08 income year. At the time of printing these instructions, this measure had not become law. For more information, visit our website at www.ato.gov.au or phone the Business Infoline.