As a small business, you have access to a range of concessions that could help your cash flow.
Company tax rates have reduced.
If you’re a base rate entity, your company tax rate is 26% in the 2020–21 income year.
The small business income tax offset has increased.
If you’re a small business sole trader or have a share of net small business income from a partnership or trust, you can claim the small business income tax offset. It’s 13% in the 2020–21 income year, up to $1,000, if your turnover is under $5 million.
Deductions for professional expenses for start-ups are available.
You may be able to immediately deduct start-up costs such as professional, legal and accounting advice and government fees and charges.
There are simplified trading stock rules.
If the estimated difference between your 2020–21 opening and closing trading stock is $5,000 or less, you don’t need to do a stocktake.
You may also be able to claim immediate deductions for prepaid expenses.
Remember, we are here to help you with your tax and BAS. Contact us on 0481 953 556 or email us at email@example.com to find out more.
Source: Ato.gov.au.2021. Know what concessions you may be eligible for? Link available here