There have been a few changes in the recent budget for small businesses. These include changes to company tax rates and small business concessions.

Changes to company tax rates

Companies that carry on a business, and which have an aggregated turnover of less than $10 million will be classified as small business entities from 1 July 2016 and be taxed at 27.5%. The maximum franking credit that can be allocated to a frankable distribution paid by a company will be based on the company’s applicable corporate tax rate. Any dividend statements prepared for 16/17 will need to be reissued with the lesser franking credit.

Small business concessions

Companies with aggregated turnover less than <$10 million will now be able to access most small business concessions including instant asset write off most assets that cost less than $20,000.

In the May 2017 Budget the ability to write off assets that cost less than $20,000 was extended to 30 June 2018.