One clear signal from the latest government Budget 2016 is that the government is going to continue supporting small businesses in Australian to grow, expand, innovate and eventually create more jobs for Australian people. In order to achieve that objective, the government has also lifted the turnover threshold of small businesses from $2 million to $10 million, which will help more than 90,000 businesses to benefit from the existing and newly announced small business tax concessions.
In CLY Tax Accountants & Bookkeepers Croydon, our Accountant Croydon and Tax Agent Croydon have composed the following summary list. The list summarises some available tax concessions for Croydon small businesses owners to assist them to have a better understanding of their business Tax Return Croydon in the near future.
- Simplified depreciation rules. This allows the small business owners to immediately deduct their assets purchased under $20,000 until 30 June 2017;
- Simplified trading stock rules. This gives small businesses owners the option to avoid end of year stocktake if the value of their stock has changed by less than $5,000;
- A simplified method of paying PAYG instalments. The simplified method removes the risk of incorrectly estimating PAYG instalments and the possible penalties that may be applied;
- An option for the business owners to account for GST on a cash basis and pay GST instalments
- Fringe Benefits Tax (FBT) exemptions
- A trial of simpler Business Activity Statement(BAS)
However, the eligibility for small business capital gains tax concession will not be affected. The turnover threshold for a business to access the small business CGT concession will remain at $2 million.
From 1 July 2016, with over 90,000 businesses starting to access to the tax concessions listed above, the Australian businesses as a whole is expected to become better supported and more competitive in the global market.
If your business annual turnover falls in the brackets of $2 – $10 million, such as some local restaurants or cafés in Croydon, and want to know more details about how your business will be affected by the latest Budget 2016, feel free to Contact our experienced Accountants Croydon and Registered Tax Agents Croydon. CLY Tax Accountants & Bookkeepers Croydon are more than happy to be on your side and help you maximise your business cash flow.