New financial year means tax breaks for small business

The new financial year will bring some new and very welcome tax breaks for small businesses.

From July 1 the 1.5% reduction in tax handed down by the Treasurer in the May 2015 Federal Budget comes into effect for incorporated companies with an annual turnover of less than $2 million per annum. The new tax rate will be 28.5%.

Unincorporated businesses – including partnerships, trusts and sole traders can now start to benefit from a tax discount of 5% (capped at $1000pa) from July 1.

The tax rate for bigger businesses will remain at 30%.

These new tax rates come as a welcome advantage for small businesses, alongside the $20,000 accelerated depreciation tax write off that has allowed taxpayers to claim the immediate deduction for business assets. The cap for this was previously $1000.

If you would like more information on how to maximise the benefits for small business from these new measures, please call Ewen or Glenn at Sharp Accounting on 5338 7100 or email to admin@sharpaccounting.com.au

Sharp Accounting is a local accounting firm in Ballarat. Sharp Accounting nurture business growth by adding value through collaboration and shared knowledge.