Most Australian businesses can be categorized as small. In Australia, your business is small if its annual aggregated turnover is less than ten million dollars. Small businesses are taxed at a lower rate than larger ones. They also get a twenty thousand dollar instant asset write-off. Small businesses receive certain exemptions such as the fifteen year and retirement exemptions. Certain aspects relating to capital gains can be beneficial as well. Small businesses need to capitalize on these tax breaks in order to maximize profits.
Key Takeaways:
- A small business is any entity with under $2 million in annual revenues.
- A write-off of $20,000 is allowed for machinery or equipment to any small business.
- Disposing of a CGT asset can reduce any capital gain by 50 percent.
“A taxpayer can shelter capital gains using the using the retirement exemption, up to a lifetime maximum of $500,000.”
Read more: https://insidesmallbusiness.com.au/planning-management/top-tax-tips-for-small-business-for-may
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