Talking Cents

Types of small business concessions you may be eligible for

Often, tax season can be a huge pain for small businesses, as every dollar is so valuable, losing even a little bit to tax can ruin a business. However, what many small business owners are not aware of, is that small business can be eligible for various tax concessions that will help you retain your money during tax season. Many of these concessions can give you a boost in cash flow yearly and can lead to a significant reduction in tax payables on a business’ exit. It is important that every business is aware of the types of concessions that they may be aware of. Here at M.A.S Partners, the leading small business accounting firm in Zetland, we understand the importance of knowledge in tax concession, and have provided you with information on the types of concessions that your business may be eligible for.

Are you a small business?

Before deciding if you are eligible for various small business concessions, you must understand whether or not you are eligible to be a small business. To be eligible for any small business tax concession, you must obviously be a small business. A small business is defined as being either a sole trader, partnership, company or trust that operates a business for the income year and has a turnover under $10 million.
Different types of concessions

Income tax concession

One of the most common small business tax concessions that you may be eligible for are income tax concessions. There are many different types of income tax concessions, such as start-up deductions, restructuring rollovers, trading stock rules, immediate deductions for prepaid expenses, and two year amendment period.

PAYG instalments concession

All small businesses are able to pay as you go (PAYG) using an amount the ATO calculates for you. Instalments are calculated by using information from your recent tax return and adjusting them for any likely growth in your business and investment income. PAYG instalments assist with planning ahead for your income tax. By making regular payments throughout the year, you will not have to pay a large tax bill during tax season.

Fringe benefit tax concession

All employers pay a fringe benefits tax (FBT) on benefits it gives to their employees. This will normally include cars, car parking and various private expenses. These benefits are generally part of an employee’s salary package. If you are a small business with a turnover under $10 million, you are exempt from paying FBT on car parking and work-related devices: including laptops, tablets, mobile phones, and calculators.

Consider hiring a small business accountant

There are so many different concessions that you may be eligible for and do not even know of. Without experience and expertise, it is almost impossible to claim it all. With over 60 years of experience in small business accounting, our team has the expertise and knowledge to help you maximise your money come tax season. Our small business accounting services aim to help your business grow as much as possible. For more information on our small business accounting business, click here.