The 2017/18 Federal Budget was released on 9 May 2017,  but what does this mean for you?

Many of the changes revolve around tax eligibility and concessions rules and will apply from the 2017 tax return.

Some of the major changes include:

• Eligibility increase for Tax Concessions – Available to businesses with turnover less than $10 million (previously $2 million)
• Increased income tax offset – From 2016-17 income year the small business tax offset increased to 8% (limit to $1000 each year)
• Company Tax Rate Cut – From 2016-17 income year, the company tax rate for small businesses decreases to 27.5%
• Simpler Depreciation Rules – Immediate deduction of most new or second hand business assets costing less than $20,00 each (extended until 30 June 2018 as per Budget initiative)

A Big win for Small Business was the extension of the $20,000 instant asset write-off, extended until 30 June 2018.

Other changes include:

• Greater compliance for Contractors woking in the courier and cleaning industries
• Banks being hit with ‘major bank levy’.
• Tightened access to small business CGT concessions

Visit the ATO website to see what small business tax concessions are available to you.