2016 Budget – Good News for Not-So-Small Business!
In the 2016 Federal Budget a number of concessions previously available to businesses with a turnover below $2m will now be made available to businesses with a turnover of up to $10 million.
The new concessions include:
- Company income tax rate cut from 30% to 27.5%
- Unincorporated small business tax discount will increase to 8%
- $20,000 instant asset write-off
- Ability to access the small business depreciation pools
- Simplified trading stock rules
- The option to account for GST on a cash-basis
- More options for timing of PAYG instalments to free-up cash flow
- Making Division 7A easier to manage and fairer
Other measures which apply to all sized businesses
- Incentives for investing in innovative start-up companies;
- Progressive company tax rate cut to 30% to 25% over 10 years; and
- Strengthened rules for the tax consolidation regime
Download our 2016 Budget Update here for more information
Please like our Facebook page (https://www.facebook.com/CollinsCoCPA) or follow us on twitter (https://twitter.com/CollinsCoCPA ) for further Federal Budget Updates as the government releases further information.
As always, we will take a proactive approach in providing you with strategies to deal with these proposed changes. Should you have any queries concerning this matter please do not hesitate to contact our Special Tax Counsel, Carmen Vassallo or your Collins & Co Adviser.