• New Wave Accountants

Tax Concessions 101 for Small Business Owners

Being a small business owner requires you to juggle multiple responsibilities all at once. Aside from ensuring that your day-to-day operations go smoothly, keeping your products and services in excellent quality, and promoting your brand effectively, you have to handle your taxes. This can be a nightmare, especially if you are new to the world of business and you have no idea how to do them in the first place.

Fortunately, the government offers a wide range of valuable concessions, which can include your asset write-offs, reduced tax rates, simplified depreciation rules, and tax-free restructuring depending on your annual turnover.

You are eligible for lower income tax rates

If you are running a small business, a key concession for your startup is lower company tax rates. You are eligible for a flat income tax rate of 27.5 percent this financial year if your business has an aggregate turnover threshold of under $50 million.

The tax rate dropped to 26 percent this year up until 2021. You are also eligible for lower company tax rates, which means there is a significant discount on the full company tax rate of 30 percent and the tax rates for sole traders and personal income. When you are having a hard time understanding all these and managing your taxes in general, hire a trusted small business accountant right away to address your needs.

You can access restructure roll-overs

As a small business owner, you can access a restructure rollover. This means ownership of the business assets can be transferred without a change in ultimate economic ownership. Therefore, any losses and gains caused by the transfer of depreciating assets, trading stock, and capital gains tax (CGT) assets to a new business entity are not counted. In short, the tax is not payable on the restructure.

You are eligible for simplified asset depreciation

If your small business has an aggregate annual turnover of under $10 million, there are rules for simplified asset depreciation that is considered another valuable tax concession. This means you can claim a 15 percent deduction and share the business portion of higher-cost assets. Furthermore, you can also get a 30 percent deduction every year upon claiming and deduct the balance of the pool at the end of the year. This can only be applied if the balance is less than your instant asset write-off threshold. On the other hand, you can decide not to account for your trading stock in that year if the difference between the value of your trading stock on hand is less than $5,000.

Don’t hesitate to work with a reliable business accountant if you need professional help in doing your taxes. Backed by years of experience, you are assured that they have the needed knowledge and skills to offer you the accounting services your business requires.


Doing taxes as a small business owner can be daunting, particularly if you are unfamiliar with the entire process involved. To seek professional help, reach out only to skilled accountants who specialize in serving small businesses.

At New Wave Accounting, our accountants in Gold Coast offer end-to-end accounting and bookkeeping services to grow businesses in Queensland. Contact us to learn more about what we offer!

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