Tax Laws Amendment (Small Business) Act 2007 (80 of 2007)
Schedule 3 STS taxpayers
Part 1 Main amendments
Income Tax Assessment Act 1997
2 Subdivision 328-A
Repeal the Subdivision, substitute:
Guide to Division 328
328-5 What this Division is about
This Division explains the meaning of the terms small business entity , annual turnover , aggregated turnover and related concepts (Subdivision 328-C).
If you are a small business entity, this Division allows you to change the way the income tax law applies to you in these ways:
(a) you can choose to put your depreciating assets into a long life pool or a general pool and treat each pool as a single asset (Subdivision 328-D);
(b) you can choose not to account for annual changes in trading stock value that are not more than $5,000 (Subdivision 328-E).
In usual circumstances, these changes will simplify the working out of your taxable income, and so reduce your compliance costs.
Table of sections
328-10 Concessions available to small business entities
328-10 Concessions available to small business entities
(1) If you are a small business entity for an income year, you can choose to take advantage of the concessions set out in the following table. Some of the concessions have additional, specific conditions that must also be satisfied.
|
Item |
Concession |
Provision |
|
1 |
CGT 15-year asset exemption |
Subdivision 152-B of this Act |
|
2 |
CGT 50% active asset reduction |
Subdivision 152-C of this Act |
|
3 |
CGT retirement exemption |
Subdivision 152-D of this Act |
|
4 |
CGT roll-over |
Subdivision 152-E of this Act |
|
5 |
Simpler depreciation rules |
Subdivision 328-D of this Act |
|
6 |
Simplified trading stock rules |
Subdivision 328-E of this Act |
|
7 |
Deducting certain prepaid business expenses immediately |
Sections 82KZM and 82KZMD of the Income Tax Assessment Act 1936 |
|
8 |
Accounting for GST on a cash basis |
Section 29-40 of the GST Act |
|
9 |
Annual apportionment of input tax credits for acquisitions and importations that are partly creditable |
Section 131-5 of the GST Act |
|
10 |
Paying GST by quarterly instalments |
Section 162-5 of the GST Act |
|
11 |
FBT car parking exemption |
Section 58GA of the Fringe Benefits Tax Assessment Act 1986 |
|
12 |
PAYG instalments based on GDP-adjusted notional tax |
Section 45-130 of Schedule 1 to the Taxation Administration Act 1953 |
(2) Also, if you are a small business entity for an income year, the standard 2-year period for amending your assessment applies to you (section 170 of the Income Tax Assessment Act 1936).
Note: If you are a small business entity for an income year and your aggregated turnover for the year is less than $75,000, you may also be entitled to the 25% entrepreneurs’ tax offset: see Subdivision 61-J of this Act.