As a small business, you have access to a range of concessions that could help your cash flow.
Here’s some news and details about available concessions for you to consider.
Lower company tax rates have changed.
If you’re a base rate entity, your company tax rate is 26% in the 2020–21 income year.
The small business income tax offset has increased.
If you’re a small business sole trader or have a share of net small business income from a partnership or trust, you can claim the small business income tax offset. It’s 13% in the 2020–21 income year, up to $1,000, if your turnover is under $5 million.
Deductions for professional expenses for start-ups are available.
You may be able to immediately deduct start-up costs such as professional, legal and accounting advice and government fees and charges.
There are simplified trading stock rules. If the estimated difference between your 2020–21 opening and closing trading stock is $5,000 or less, you don’t need to do a stocktake. Just report the same amount for your opening and closing stock in your tax return.
You may also be able to claim immediate deductions for prepaid expenses.
Remember, we can help you with your tax. Call us on 03 9553 0271.
Source: ATO Small Business Newsroom August 2021
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/Newsroom/smallbusiness/General/Know-what-concessions-you-may-be-eligible-for-/.
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