New Law for Tax Concessions
Small business changes announced in the 2015-16 budget are now law.
The following changes apply from 1 July 2016:
27.5% company tax rate for small businesses. The maximum franking credit that you can allocate to a distribution is also 27.5%. If you have lodged early, see below for more information.
8% small business income tax offset (up to $1,000) limited to businesses with a turnover of less than $5 million. It applies only to business income for sole traders, or share of business income for partnerships or trusts.
$10 million small business turnover threshold (previously $2 million). This means more businesses can access a range of small business concessions, including the $20,000 instant asset write-off and reduced company tax rate.
Tax concessions help your business save, so make sure you find out what you can access. Remember, registered tax agents and BAS agents can help you with tax and super advice.
Find out about: What’s new for small business for an overview of the recent changes to concessions. Small business franking guidance for instructions on how to adjust your member statement if you have allocated the wrong franking credit rate. Company tax rate for instructions on making an amendment if you have lodged your company tax return early using the wrong rate.