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  • leigh@branderaccountants.com.au

Small Business Concessions

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:

Small Business Tax Break

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.

CGT 15 Year Exemption

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.

CGT 50% Active Asset Reduction

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.

CGT Retirement Exemption

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.

CGT Roll-Over Relief

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.

Simpler Depreciation Rules

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.

Simpler Trading Stock Rules

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.

Immediate Deduction Prepaid Expenses

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.

Income Tax rates 2017-2018

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 Medicare levy of 2% (legislation pending to increase this to 2.5%).

. The low income levy, which effectively increases the tax free threshold to $20,543.

Medicare levy

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.

Temporary Budget Repair Levy

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

Income Tax rates 2016-17

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 levy

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.

Temporary Budget Repair Levy

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.

Income Tax rates 2014-15

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 levy

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.

Temporary Budget Repair Levy

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