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  • Income tax concessions

    As a small business, you may be eligible for the following income tax concessions.

    From 1 July 2016, the turnover threshold for these concessions is:

    • $5 million for the Small business income tax offset
    • $10 million for all other income tax concessions.

    The turnover threshold up to 30 June 2016 was $2 million for all these concessions.

    Find out about:

    Deductions for professional expenses for start-ups

    From 1 July 2015, small businesses are entitled to certain deductions when starting up a small business. The range of deductible start-up costs includes professional, legal and accounting advice and government fees and charges.

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    Small business restructure rollover

    From 1 July 2016, small businesses can change the legal structure of their business without incurring any income tax liability when active assets are transferred by one entity to another.

    This rollover applies to active assets that are CGT assets, trading stock, revenue assets and depreciating assets used, or held ready for use, in the course of carrying on a business.

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    Simplified trading stock rules

    This concession allows you to estimate the value of your trading stock at the end of the financial year to report in your tax return. You will need to record how you estimated the value of your stock, but you don't need to notify us that you have chosen to use an estimate.

    You can choose not to conduct a stocktake (and account for changes in the value of your trading stock) if there is a difference of $5,000 or less between:

    • the value of your stock at the start of the income year
    • a reasonable estimate of the value of your stock at the end of the year.

    If you choose not to use an estimate, you will need to conduct a stocktake and account for the changes in the value of your stock.

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    Immediate deductions for prepaid expenses

    You can claim an immediate deduction for prepaid expenses where the payment covers a period of 12 months or less that ends in the next income year.

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    Two-year amendment period

    You generally have a two-year time limit, from the day we issued your notice of assessment, for reviewing an assessment.

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    Last modified: 19 Oct 2018QC 22650