Additional tax changes affecting small business
The government has introduced legislation for the following three small business measures that, if passed, will apply from 1 July 2015:
- Tax offset
A tax offset to individuals who run small businesses (with an aggregrate annual turnover of less than $2 million), or who have a share of a small business’ income included in their assessable income.
The tax offset is available to individuals, partners, or beneficiaries of a trust that is a small business entity.
The tax offset is 5% of the income tax payable on the portion of an individuals income that is small business income, capped at $1,000 per annum.
- Start-up expense deduction
An immediate deduction for some business start-up expenses, such as legal advice and registration fees, including government fees and charges as well as costs associated with raising capital.
- FBT exemption
An exemption from FBT where small businesses provide an employee with more than one work-related portable electronic device, even where the devices have substantially identical functions.
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