Tax changes for small business!

Keeping up to date is hard work; especially when you’re running your own business.

TaxArana has it’s finger on the pulse when it comes to changes to tax, and knowing the latest rules can mean the difference between a big tax return, and you owing the ATO. Consequently, it gets even trickier when you have years of tax returns to submit and there are changes to the same rule over number of years. This means that each return needs to reflect what the rule was that particular year. Yes, really.

If you are a little behind in your tax returns, here are just some of the changes to small business tax that will effect your returns:

2016-2017 income year

  • The lower company tax rate decreased to 27.5% Companies are eligible for this rate if they  are a small business that:
    • has a turnover of less than $10million; and
    • operates a business for all or part of the income year
  • The small business income tax off set:
    • increased to 8%, with a limit of $1000 each year
    • applies to small business with a turnover of less than $5million

2017-18 income year

  • For this income year, a base rate entity for the lower 27.5% company tax rate. However you still need to be a small business to be eligible for other small business tax concessions.
  • A base rate entity is a company that:
    • has a turnover less than the turnover threshold ($25million, increased from $10million) for the 2017-18 income year; and
    • operates a business for all or part of the income year
  • The $20,000 instant asset write off threshold was extended until 30 June 2018

If you need help with your tax, book an appointment! Phone 3351 611 to sort out a time that suits.

Steve.

info@taxarana.com.au

 

 

Posted in: Uncategorized

Leave a Comment (0) ↓

Leave a Comment