Small Business, Big Concessions

Does your business satisfy these two criteria?

  • Annual aggregated turnover in prior year or current year is less than $10 million
  • Annual aggregated turnover in current year is less than $25 million

If so, there are a number of concessions that your small business may be entitled to that you may not be aware of. Read on …


The Small Business Entity (SBE) aggregated turnover eligibility requirement has increased from $2m to $10m with effect from 1 July 2016. Essentially what this means is if your business’ aggregated turnover is less than $10m you are eligible to access a range of small business concession such as an immediate deduction for depreciable assets costing less than $20,000.

Note however, whilst this increase in threshold provides access to most SBE concessions, it does not apply to the following:

  • Small Business Capital Gains Tax (CGT) concessions (aggregate turnover threshold for this concession remains at $2m)
  • The Small Business Income Tax Offset aka the Unincorporated Small Business Tax Discount (aggregate turnover threshold is $5m)



Is your business aggregate turnover between $10m and $25m? Well you are in luck!

Whilst you are not eligible for the small business concessions summarised above, you are entitled to a lower tax rate of 27.5% as of 1 July 2017. Consequently, all base rate entities with aggregated turnover of less than $25m (increased to $50m from 2019FY) are eligible for a lower 27.5% company tax rate from the 2018 financial year.

A base rate entity is effectively a Company that carries on a business and has no more than 80% of its income from passive sources.

As you can see the landscape is changing and gradually the concessions made available to small & medium businesses is expanding. If you have any questions or want to know what concessions your business may be eligible for feel free to contact us and we would be happy to shed light on it for you.

Written for you by Emelia Afful

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