Small businesses are set to benefit from wide-ranging changes to tax concessions. The changes are a boon for small business, says Mark Morris, CPA Australia’s senior tax counsel. “Small businesses can obtain significant benefits by being able to write off any depreciating assets costing less than $1,000, and by pooling assets over $1,000 and depreciating them at accelerated rates. Businesses can also claim immediate deductions for certain prepaid expenses,” explains Morris.
“Start-up entities can also access the entrepreneur’s tax offset which may reduce the tax payable on business income by up to 25 percent where turnover is less than $75,000,” adds Morris. “This can be a real perk for micro businesses who will be cash strapped in their initial years as they build a business. Moreover, this will not be means tested for the 2008 financial year.”
To be eligible, your business must have a turnover of less than $2 million.
For further information, visit www.ato.gov.au
