A number of tax measures to further assist small businesses, with turnover below $2 million, were announced in the budget including a reduction in the tax rate for companies from 30% to 28.5%, and for unincorporated businesses by 5% (capped at $1,000), applicable from the 2015/16 income year.
Further, the threshold below which immediate deductions for the cost of capital assets can be claimed will be temporarily increased (from May 2015 to June 2017) from $1,000 to $20,000. This limit applies to each individual item and can be applied to any number of items.
Also, from the 2015/16 income year, start-ups will be able to claim immediate deductions for professional expenses associated with starting a business and other changes to encourage start-ups will also be introduced, including further changes to the employee share scheme rules, following recent changes to those rules that are to take effect from 1 July 2015.
Lastly, relief will be available to small businesses for CGT arising from alteration of their business structure from the 2016/17 income year.