Income tax concessions for small business entities - overview

For the 2012-13 income year onwards there have been a number of changes to small business tax concessions - see Changes to concessions for 2012-13 onwards.

Introduction

A range of tax concessions are available to businesses that are a small business entity, that is, an entity that has aggregated turnover of less than $2 million.

Some of the concessions were previously available only as a package to businesses in the simplified tax system (STS). From the 2007-08 income year onwards, the STS 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 no longer need 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
• two-year amendment period.

For information about the other concessions available to small business entities, visit Small business entity concessions - home.