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Small Business Entities (SBE)

Small businesses have access to a range of tax concessions. This applies to sole traders, partnerships, companies, or trusts.


To qualify for these concessions, you'll need to check whether your business is a 'small business entity' for the year in question.


In general, to meet this requirement, your aggregated turnover must be less than $10 million.


Your aggregated turnover is your gross income or proceeds (rather than your net profit) for an income year. When working this out you need to:


  • include the annual turnover of any entity you are connected with or that is an affiliate of yours at any time during that income year

  • exclude any goods and services tax (GST) amounts you have charged on your sales.


You must review your eligibility each year.


The small business concessions include:


  • Income tax concessions

  • Capital gains tax (CGT) concessions

  • Pay as you go (PAYG) instalment concessions

  • GST and excise concessions

  • Fringe benefits tax (FBT) concession


One of the most exciting concession changes of recent times is the small businesses' immediate write-off for assets costing less than $20,000 each.


Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased from 1 July 2023.


This deduction can be used for each asset that costs less than $20,000, whether new or second-hand. The deduction is claimed through a tax return, in the year the asset was first used or installed ready for use.



Useful Links:


ATO - Small Business Entities





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