In a significant win for business, the 2016/17 Federal Budget proposes to increase the small business entity turnover threshold from $2 million to $10 million from 1 July 2016. The reform will give a greater number of businesses access to a range of tax concessions such as:
The current $2 million turnover threshold will be retained for access to the small business CGT concessions.
From 1 July 2016, the Government further proposes to increase the current 5% tax discount (Small Business Income Tax Offset – SBITO) to 8%.
The current tax discount (or SBITO) cap of $1,000 per individual for each income year will be retained.
Access to the discount will be extended to individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $5 million.
Proposed date of effect: 1 July 2016