Business and Management

What Tax Concessions Are Available for Small Business?

There are several small businesses tax breaks and concessions that are designed to encourage small businesses. Small business is by far the largest employer, providing 80% of jobs in the economy.

The federal tax laws provide a wide range of concessions. This range simplified compliance requirements to take tougher rules, deductions, and exemptions. 

To get more information about small business tax concessions, you may go through https://www.rwkaccountancy.com.au/.

tax concessions

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As of income year 2007/08, a standard known as eligibility criterion applies to a small business entity to test a series of concessions that are available under the tax regimes on income.

An entity is considered a business like this if it carries on a business and meets the turnover criterion aggravated two million dollars. No choice or election is necessary to achieve the status of a business entity.

However, a business entity may choose whether or not to access one or more concessions are available.

Any entity that meets this criterion can choose to access a range of concessions, subject to the additional criteria set out in the concessions. Including simplified depreciation rules, rules simplify trading activities, special rules for prepaid expenses, the annual meeting of acquisitions and imports of GST input tax credits are partially estimable.

Partners in partnerships are a business entity of this type that can also access the tax benefits on capital gains. Taxation is a complex area of law and you should seek advice from a qualified professional to take advantage of these concessions.