Take Advantage Of Tax Changes
From asset write-offs to Simpler BAS, recent tax changes could impact your small business this financial year.
For instance, did you know the $20,000 instant asset write-off has been extended to 30 June 2018? Typically, that means if your business turnover is less than $10 million, you can deduct the business portion of assets costing less than $20,000.
Another tax change is the income tax offset for small business which has been increased to 8%, with a limit of $1,000 each year. Sole traders, or those with a share of net small business income from a partnership or trust, can claim the offset so long as annual turnover is less than $5 million.
A number of you will have begun taking advantage of Simpler BAS which came into effect on 1 July 2017. For businesses with turnover less than $10 million, the simplified BAS process now requires you to provide “Total Sales”, “GST on Sales” and “GST on Purchases”. That means you only have to worry about three BAS entries - down from the previous seven.
Finally, the government now regards a “small business” as one that has turnover of less than $10 million. The previous threshold was $2 million. The change is significant because more firms will now be eligible for a range of concessions on GST, excise, PAYG instalments and superannuation.
Keen to find out how these changes could impact your business?