• Income tax concessions

    There are four income tax concessions available to small business entities.

    Simplified depreciation rules

    You can use the simplified depreciation rules to work out deductions for most depreciating assets.

    In general, you can:

    • immediately write-off most depreciating assets costing less than the threshold amount ($20,000 for assets purchased from 7.30pm on 12 May 2015 until 30 June 2017)
    • pool most other depreciating assets (irrespective of their effective life) in the general small business pool and depreciate at the diminishing value rate of 30% thereafter
    • depreciate most newly acquired assets at 15% in the first year, regardless of when they were acquired in that year

    From 1 July 2017, the threshold is $1,000.

    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 $5000 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.

    See also:

    Simplified trading stock rules

    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.

    See also:

    Immediate deductions for prepaid expenses

    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.

    See also:

    Review of your assessment and record keeping

  • Last modified: 22 Jun 2015QC 22650