Businesses that satisfy a turnover threshold may qualify as a small business entity.
The advantages of being a small business entity include access to a range of tax concessions including:
lower tax rates
capital allowance concessions
trading stock concessions, and
FBT and GST concessions.
Generally, your business would qualify as a “small business entity” if you have, or is likely to have, an aggregated turnover in the current income year of less than $10m. It may also apply if you’ve had an aggregated turnover in the previous income year of less than $10m.
If you would like to discuss how the small business entity concessions may apply to your business, please contact our office.