Guide to small business entity concessions

Overview

Small businesses with an annual turnover less than $2 million may be able to access a range of tax concessions. This applies whether you operate your business as a sole trader, partnership, company or trust.

Eligibility

You need to work out whether your business is eligible for the concessions generally. Then you can choose one or more of the tax concessions that suit your business and check your specific eligibility. You should also check whether you are eligible each tax year.

Income tax concessions

Check whether you are eligible for the following income tax concessions:

• simplified trading stock rules
• simplified depreciation rules
• immediate deductions for prepaid expenses
• two-year amendment period.

Capital gains tax (CGT) concessions

Check whether you are eligible for the following capital gains tax (CGT) concessions:

• CGT 15-year exemption
• CGT 50% active asset reduction
• CGT retirement exemption
• CGT rollover.

Excise concession

Check whether you are eligible to report and pay excise monthly rather than weekly.

Goods and services tax (GST) concessions

Check whether you are eligible for the following goods and services tax (GST) concessions:

• GST cash accounting
• GST instalments
• GST and annual private apportionment.

Pay as you go (PAYG) instalment concessions

Check whether you are eligible for the following pay as you go (PAYG) instalment concessions:

• gross domestic product (GDP)-adjusted PAYG and GST instalment amounts
• PAYG instalments payment option choice.

Fringe benefits tax (FBT) concession

Check whether you are eligible for an exemption from FBT on car parking benefits.

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