The long awaited Enterprise Tax Plan Bill has finally passed the Senate, bringing better tax planning options to more small business entities across the country.
BMO Business Centre Partner Michelle McVeigh, said it was welcomed news.
“This is a timely announcement as we move into the tax planning season as it gives many more small businesses a lot more options and savings. It means small businesses with an aggregated turnover of less than $10 million will be able to access most small business tax concessions, like accelerated depreciation,”
“The increase in the threshold from $2 million to $10 million turnover opens up the concessions to thousands more businesses. While the threshold for accessing the small business income tax offset will be $5m (aggregated turnover),” Mrs McVeigh said.
The Bill, which was passed last week, saw the Government agree to provide a one-off payment of $75 for single recipients and $125 for couples of the Aged Pension, the Disability Pension and the Parenting Payment, in order to have the support of the crossbench senators.
Also included in the Bill is the Government’s ten year plan for company tax cuts, which have reduced the corporate tax rate to 27.5% for businesses with an aggregated turnover of less than $10 million for the 2016/17 financial year. This turnover threshold will continue to rise as part of the plan and the rates will start to reduce in stages from 2024 to eventually fall to 25%.
Mrs McVeigh said it was a positive step forward for small business enterprises in our region.
“It’s huge for our clients and something that many of them have been waiting for and will now be able to take advantage of. We recommend you book a tax update appointment with your accountant to discuss your options for this financial year,” Mrs McVeigh said.