Tax Concessions for Small Business Entities in Australia

Running head: TAX
Tax
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Table of Contents
Simplified depreciation rules- instant asset write off:................................................................1
Accelerated depreciation for primary producers:.......................................................................2
Deductions for professional expenses for start-ups...................................................................2
Immediate deductions for prepaid expenses:.............................................................................3
Lower company tax rate changes:..............................................................................................3
PAY instalment concession:......................................................................................................3
Simplified trading stock rules:...................................................................................................4
CGT 15 year exemption:............................................................................................................4
CGT retirement exemption:.......................................................................................................4
Annual apportionment of the GST input tax credits Paying GST by instalments.....................5
Excise concession.......................................................................................................................6
CGT 15 year asset exception......................................................................................................6
Conclusion:................................................................................................................................7
Reference....................................................................................................................................8

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Introduction:
In the present report an effort has been made is respect of the listing of the various
concessions of tax that are being made available to the small business entities of the country.
The concessions are required for the growth and the sustenance of the business culture within
the country. The small enterprises play a major role in the economy of the country hence
these are the few steps that are taken up by the government for their economic interest. A
small business entity is referred to as an individual, partnership, company or a trust that is
engaged in the business activities and has a turnover that is less than $2 million.
Simplified depreciation rules- instant asset write off:
This section refers to the deduction that is obtained to the tune of $20000. The same has
been extended until 30th June 2018. Under this provision if the taxpayer is a small business
entity and is, carrying out business activities it can deduct the portion of the assets that were
being used in the business if the same were bought at a cost of less than $20000 (Long et al.,
2016). For the purpose of getting this exemption has to be fulfilled:
a) The asset must be purchased between 1st July 2016 to 30th June 2018 and the turnover
of the taxpayer was less than $10 million.
b) It was purchased between 7:30 pm on 12th May 2015 to 30th June 2016 and the
turnover of the taxpayer is less than $2 million.
The deduction is available in respect of the every asset if the same has been acquired for less
than $20000 irrespective of the fact that the same is new or second hand. The deduction can
be claimed in the first year in which it was used or was installed and became ready for use.

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Accelerated depreciation for primary producers:
Under this provision, the entities or the individuals that are engaged as primary producers are
eligible for this deduction from 12th May 2015. Under the following method, the primary
producers can:
a) Engage in the immediate deduction of the cost that is incurred in respect of the
fencing and the water facilities.
b) Engage in the deduction of the assets that are used for the storing the fodder over a
period of three years.
The entities that are involved as primary producer can make use of the simplified
depreciation rules including the provision of instant write off.
Deductions for professional expenses for start-ups
Under this provision starting from the 1st of July 2015, the small businesses are entitled for
claiming certain deductions in respect of the expenditure that is incurred by them at the time
of starting of a small business (Maxwell, 2015). The deductible expense includes
professional, legal and accounting advice and the government fees and charges.
Immediate deductions for prepaid expenses:
Under this provision, the small business entities can claim deduction in respect of the prepaid
expense that had been paid by it and covers a period of 12 months or less and the same period
ends in the next income year of the taxpayer (O'faircheallaigh, 2017).
Lower company tax rate changes:
From the income year 2017-18, a base rate entity will be considered to be eligible for
a corporate tax rate that amounts to 27.5%. However, for the purpose of availing the same the
entity will have to be a small business entity.