Know what concessions you may be eligible for?

As a small business, you have access to a range of concessions that could help your cash flow.

Here’s some news and details about available concessions for you to consider.

Lower company tax rates have changed.

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. Just report the same amount for your opening and closing stock in your tax return.

You may also be able to claim immediate deductions for prepaid expenses.

If you require any assistance with your financial and taxation affairs please contact us.

This article is brought to you by the ATO Small Business Newsroom.