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  • Increase the small business entity turnover threshold

    In the 2016–17 Budget, the Government announced an increase to the small business entity turnover threshold from $2 million to $10 million. From 1 July 2016, businesses with a turnover of less than $10 million will be able to access a range of concessions which are currently only available to business entities with a turnover of less than $2 million.

    The current $2 million turnover threshold will be retained for access to the small business capital gains tax concessions.

    Access to the unincorporated small business tax discount will be limited to entities with turnover less than $5 million.

    Administrative treatment

    We accepted 2017 tax returns as lodged during the period up until the date of Royal Assent. Now that the outcome of the proposed amendment is known taxpayers will need to review their positions back to their 2016–17 income year.

    Taxpayers who applied the previous legislation will need to review their position. Those taxpayers who underclaimed deductions can seek amendments and if a reduction in liability results, interest on overpayment will be paid.

    Taxpayers who claimed deductions which accord with the new law do not need to do anything more.

    Legislation and supporting material

    The Treasury Laws Amendment (Enterprise Tax Plan) Act 2017External Link received Royal Assent on 19 May 2017.

    More information

      Last modified: 26 Jun 2017QC 48874