Access to small business tax concessions will be easier under new legislation coming into effect on July 1 this year.
The new laws will standardise the eligibility criteria for GST, the Simplified Tax System, capital gains tax, fringe benefits tax and pay-as-you-go concessions.
While the concessions currently require separate eligibility tests, from July 1 any business with annual turnover of less than $2 million can access them. Any business meeting the turnover test can choose from suitable concessions, without obligation to adopt those not suited to their requirements. No business with existing access to concessions will miss out, with benefits applying to businesses meeting the new small business definition or other existing eligibility criteria.
The government expects this single definition of small business will result in reduced compliance costs for around two million small businesses, or 96 percent of all Australian businesses.