The new Act reduces the company tax rate from 30 per cent to 28.5 per cent for companies that are small business entities with an aggregated turnover of less than $2 million from the 2015-16 income year.
The corporate tax rate for companies that have an aggregated turnover of $2 million or more remains at 30 per cent.
Instant Asset Write-Off
The Act temporarily increases the threshold below which small businesses can claim an immediate deduction for the cost of assets from $1000 to $20,000.
The increased threshold of $20,000 applies from 7.30pm (AEST), on 12 May 2015 until Friday 30 June 2017. From Saturday 1 July 2017, the threshold reverts to $1000.
Accelerated Depreciation for Primary Producers
The Act allows primary producers to claim an immediate deduction for capital expenditure on water facilities and fencing assets and to deduct capital expenditure on fodder storage assets over three years.
The measure applies to assets that an entity starts to hold or to expenditure an entity incurs at or after 7.30pm (AEST), on 12 May 2015.
5% Tax Discount
The 5 per cent tax discount for unincorporated small businesses.
The immediate deduction for small business start-up expenses.
The FBT exemption for portable electronic devices for small businesses.