Did you know that from 1 July 2016, the small business annual turnover threshold increased from $2 million to $10 million for the purpose of accessing certain existing small business income tax concessions? This opens up the small business income tax concessions to businesses that were never previously eligible.

There is a formula for working out the annual turnover amount, but once you have determined you are eligible, here are some small business tax concessions that you can benefit from (and may never have utilised before).

Take advantage of these concessions that are specifically geared for start-ups and small businesses.

1. Simplified trading stock rules – if you estimate at 30 June that the value of your trading stock has not changed by more than $5,000 since the previous 12 months, you can choose to not conduct a formal stocktake and not account for the changes in the value of trading stock.

2. Immediate upfront deduction for prepaid expenses – instead of claiming over the period the prepayment relates to, this is of benefit if the period relates to more than one tax year.

3. Two-year time limit for the ATO to go back and review your prior tax returns.

4. Simplified depreciation rules – instant asset write-off for assets costing less than $20,000 purchased between 7:30 pm on 12 May 2015 and 30 June 2017. This concession ends after 30 June 2017!

5. Accelerated depreciation for primary producers – immediate write-off for capital expenditure on water facilities and fencing assets and write-off expenditure on fodder storage assets over 3 years (both effective from 12 May 2015).

6. Immediate deductions for professional expenses for start-up businesses – includes fees for professional advice on the proposed structure or operation of business and payments to Australian Government agencies for fees/tax/charge relating to set up of the business or establishing the operating structure.

7. Small business restructure rollover relief – capital gains tax relief if you change legal trading structures (subject to conditions being met).

8. Small business income tax offset – company pays tax at 28.5% (not 30%) and individuals get a tax offset of up to $1,000.

9. Accounting for GST on a cash basis – instead of accruals method so that GST remittances to the ATO are aligned with your business cashflow and more manageable.

10. Paying PAYG income tax installments – if your business reports and pays PAYG installments quarterly, you may be able to choose the “GDP adjusted installment amount method”.

11. Annual apportionment of GST input tax credits for items that are partly used for private use – simplified method for claiming GST as you may choose to claim the full amount of GST in your quarterly activity statements and then make a single adjustment to account for the private proportion after the end of the income year.


The team at EMspire Advisory are experienced accountants in Sydney and would like to help you create, grow and succeed in business. So to find out more and if you can benefit from these tax concessions, please contact us!

Please note this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for advice specific to you and your circumstances.