Small Business Turnover Threshold To Increase $10m | North Advisory

At North Advisory Chartered Accountants we've made it easy to make an appointment with us. Simply enter your details in the boxes below. Click Send request now when you have completed your details and we'll email to confirm your appointment.


    Small business turnover threshold to increase to $10m

    Posted by Northadvisory on September 15, 2016

    The small business entity turnover threshold will be increased from $2m to $10m from 1 July 2016. The increased threshold means businesses with an annual turnover of less than $10m will be able to access existing small business income tax concessions including:

    • the lower small business corporate tax rate (which will be reduced to 27.5% from the 2016/17 income year)
    • immediately deductibility for small business start-up expenses under ITAA 1997 s 40-880
    • simplified depreciation rules under ITAA 1997 Subdiv 328-D, including the instant asset write off threshold of $20,000 available until 30 June 2017
    • simplified trading stock rules under ITAA 1997 Subdiv 328-E
    • roll-over for restructures of small businesses under ITAA 1997 Subdiv 328-G
    • option to account for GST on a cash basis and pay GST instalments as calculated by the ATO
    • simplified method of paying PAYG instalments calculated by the ATO, and
    • other tax concessions such as the extension of the FBT exemption for work-related portable electronic devices available from 1 April 2016.

    The increased $10m threshold will not be applicable for accessing the small business capital gains tax concessions. These concessions will remain available only for small businesses with a turnover of less than $2m or that satisfy the maximum net asset value test. The unincorporated small business tax discount (which will be increased to 8% from 1 July 2016) will however be accessible to small businesses with a turnover of less than $5m.

    If you have any questions or other enquires, please contact:

    Martin van der Saag
    T: 02 9984 7774

    Norman Ruan
    T: 02 9984 7774