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Small Business Tax Concession in Australia

   

Added on  2021-05-30

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TAX CONCESSIONS1Small Business Tax Concession in AustraliaStudent’s NameInstitutional Affiliation
Small Business Tax Concession in Australia_1

TAX CONCESSIONS2Small business venture in Australia is accorded special treatment and considerationespecially on tax aspect so as to boost them in their day to day operation and safe them fromexiting the market due to tough economic time (Storey,2016.pg. 4.) Mostly this special treatmentis on the tax part whereby there is tax relief settled on their tax burden.This exemption and concession application is only to small business that operate businesswithin the whole year as explained in the Draft Taxation Ruling of 2017/D7 that expects thebusiness to be on going(carrying on business) (Woellner,2012.p. 5)and whose aggregated annualturnover or rather sales is less than 10 million Australian Dollar.Australian Tax Office and the Draft Taxation Ruling 2017/D7 outlines roughly six taxconcessions that a small business entity is eligible to enjoys or subjected to for tax purposesduring its full course of carrying business (Henry, 2009.p.12).The first concession is on theturnover glance exemption point whereby there exists concession depending on the levels ofsales turn over made by an entity. The concession ideally depends with the level of turnoverfrom the range of between 5m dollars to 10 dollars, from 2m dollars to 5m dollars and for thosewhich are less than 2million in value (Woellner, 2016.p.13.) All these business with this salesrange are eligible to deduct all expense for start-up that is deemed professional based i.e. legal,government rates and fees, accounting and consultancy for example construction consultancyfee, all these expenses are deductible as per ITAA 1997 sec 40-880 in the year they were spent orexpenditure year.There is also allowance for claiming all prepayment expenses made as deductibleallowance within the year they were paid for this applies to all the levels of turn overs as long asit is within the 12month rule (Miller, 2016.p.20).An example is where insurance and clearanceexpense for goods in transit is paid in advance and those goods have not been received but the
Small Business Tax Concession in Australia_2

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