Small business entities with an annual turnover of less than $10 million from 2016-2017 (earlier less than $2 million) onwards, may be eligible for a range of tax concessions. Eligible businesses can choose to use the following concessions:
You may be able to claim 100% tax deduction on some new assets costing less than $20,000. The tax concession is in addition to any deductions available under the depreciation rules.
If you are aged 55 or older and retiring, and your business has owned an asset for 15 years or more, then you won’t pay CGT when you sell the asset.
If selling an active business asset you may be entitled to a 50% reduction of the capital gain. This is in addition to the 50% CGT discount on assets held for 12 months.
There is a CGT exemption on the sale of a business asset, up to a lifetime limit of $500,000. If you are under 55, money from the sale of the asset must be paid into a complying superannuation fund or approved deposit fund, or a retirement savings account.
If you sell a small business asset and buy a replacement, you can roll over your CGT liability, to the value of the replacement asset. This means you won’t pay any CGT owing until you sell the replacement asset.
Generally, you can pool your assets to make depreciation calculations easier and also claim an immediate deduction for most assets costing less than $20,000.
You can choose whether or not to do an end-of-year stock take if the value of your trading stock has not increased or decreased by more than $5,000 over the year.
You can claim an immediate deduction for prepaid business expenses where the payment covers a period of 12 months, or less, that ends in the next income year.
The following rates for 2017-2018 apply from 1 July 2017.
Taxable income | Tax on this income | Effective tax rate |
$1 – $18,200 | Nil | 0% |
$18,201 – $37,000 | 19c for each $1 over $18,200 | 0 – 9.65% |
$37,001 – $87,000 | $3,572 plus 32.5c for each $1 over $37,000 | 9.65 – 22.78% |
$87,001 – $180,000 | $19,822 plus 37c for each $1 over $87,000 | 22.78 – 30.13% |
$180,001 and over | $54,232 plus 45c for each $1 over $180,000 | 30.13 – less than 45% |
The above rates do not include:
. The low income levy, which effectively increases the tax free threshold to $20,543.
Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, most taxpayers pay a Medicare levy of 2.0% of their taxable income.
From 1 July 2014 the Medicare levy rose from 1.5% to 2.0%. The levy was subsequently increased to help fund the budget deficits).
We will work out your Medicare levy, including any Medicare levy reduction, from the information you provide on your tax return.
As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy.
The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000. This will cease to apply from 1 July 2017.
The Individual taxpayers with a taxable income of more than $180,000 per year will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000.
It will apply from 1 July 2014 and applies to the 2014-15, 2015-16 and 2016-17 income years.
The tax tables have been updated so that employers can withhold the appropriate amount of tax and levy.
The levy will cease to apply from 1 July 2017
The following rates apply for 2015-2016 and 2016-2017 income years.
Taxable income | Tax on this income |
---|---|
0 – $18,200 | Nil |
$18,201 – $37,000 | 19c for each $1 over $18,200 |
$37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 |
$80,001 – $180,000 | $17,547 plus 37c for each $1 over $80,000 |
$180,001 and over | $54,547 plus 45c for each $1 over $180,000 |
The above rates apply to individual resident taxpayers only
The above rates do not include the Medicare levy of 2%
The above rates do not include the Temporary Budget Repair Levy. The Temporary Budget Repair Levy is payable at a rate of 2% for taxable incomes over $180,000.
Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, most taxpayers pay a Medicare levy of 2.0% of their taxable income.
From 1 July 2014 the Medicare levy rose from 1.5% to 2.0%. The levy was subsequently increased to help fund the budget deficits).
We will work out your Medicare levy, including any Medicare levy reduction, from the information you provide on your tax return.
As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy.
The levy is payable at a rate of 2% of each dollar of a taxpayer’s taxable income over $180,000.
The Individual taxpayers with a taxable income of more than $180,000 per year will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000.
It will apply from 1 July 2014 and applies to the 2014-15, 2015-16 and 2016-17 income years.
The Budget Repair Levy will cease to apply from 1 July 2017.
The following rates for 2014-15 apply from 1 July 2014.
Taxable income | Tax on this income |
---|---|
0 – $18,200 | Nil |
$18,201 – $37,000 | 19c for each $1 over $18,200 |
$37,001 – $80,000 | $3,572 plus 32.5c for each $1 over $37,000 |
$80,001 – $180,000 | $17,547 plus 37c for each $1 over $80,000 |
$180,001 and over | $54,547 plus 45c for each $1 over $180,000 |
The above rates apply to individual resident taxpayers only
The above rates do not include the Medicare levy of 2%
The above rates do not include the Temporary Budget Repair Levy. The Temporary Budget Repair Levy is payable at a rate of 2% for taxable incomes over $180,000.
Medicare is the scheme that gives Australian residents access to health care. To help fund the scheme, most taxpayers pay a Medicare levy of 2.0% of their taxable income.
From 1 July 2014 the Medicare levy rose from 1.5% to 2.0%. The levy was subsequently increased to help fund the budget deficits).
We will work out your Medicare levy, including any Medicare levy reduction, from the information you provide on your tax return.
As part of the 2014-15 Federal budget the Government introduced a Temporary Budget Repair Levy.
The Individual taxpayers with a taxable income of more than $180,000 per year will have additional tax withheld by their employer, starting from 1 July 2014.
The levy is payable at a rate of two per cent of each dollar of a taxpayer’s taxable income over $180,000.
It will apply from 1 July 2014 and applies to the 2014-15, 2015-16 and 2016-17 income years.
The levy will cease to apply from 1 July 2017