For unincorporated small businesses with turnover less than $5 million, the rate of the tax discount, also known as the small business income tax offset, will increase to 16 per cent by 2021–22.
The small business entity turnover threshold was changed from $2 million to $10 million, which means more business owners have access to a range of small business tax concessions, including:
- simplified depreciation rules, including the $20,000 instant asset write-off
- simplified trading stock rules
- a simplified method of paying PAYG instalments calculated by the ATO
- the option to account for goods and services tax (GST) on a cash basis and pay GST instalments as calculated by the ATO.