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Small business entity concessions for primary producers

Last updated 2 July 2023

Workout if you can access small business entity concessions that suit your business.

Choosing to access the small business entity concessions

If you are a primary producer and are a small business entity, you can choose to access the small business entity concessions that suit your business. You will have to review your eligibility for the concessions each tax year and you may need to satisfy other conditions that apply to a particular concession.

A small business entity may be a sole trader, partnership, company or trust. You can get the latest small business news and information by subscribing to the ATO small business newsroom.

Simplified trading stock

Small business entities only need to conduct stocktakes and account for changes in the value of trading stock in limited circumstances (see Stock on hand).

For more information, see Oyster farmers: calculating the value of trading stock.

Prepaid expenses

Small business entities and entities that would have been small business entities if the aggregated turnover threshold was less than $50 million can claim an immediate deduction for certain prepaid expenses.

Simplified depreciation rules

If you are an eligible small business entity, you may choose to calculate deductions for your depreciating assets using the simplified depreciation rules.

A small business entity can choose to claim deductions under either the simplified depreciation rules or the uniform capital allowance (UCA) rules for certain depreciating assets used in the course of carrying on a business of primary production. The choice is available for water facilities, fencing assets, fodder storage assets and depreciating assets relating to landcare operations, electricity connections and phone lines. Once you have made that choice, it cannot be changed. If you choose to use the simplified depreciation provisions with respect to certain primary production assets, then you must use both the immediate write-off (including temporary full expensing) and the pooling where applicable.

For horticultural plants (including grapevines), use the UCA provisions.

Continue to: Depreciating assets and capital expenditure