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Small business tax cuts for the new financial year

Tax Cuts

If you’re running a small business, you might be eligible for some tax cuts that came into effect at the start of the new financial year on July 1. These tax cuts are:

· an increase in the small business tax offset, and

· a drop in the company tax rate.

Small Business

Small business tax offset

If your small business has a sole trader, partnership or trust structure, the small business tax offset rate has increased from 8% to 13% from July 1, up to a maximum offset of $1,000. A tax offset reduces the amount of tax you pay.

To be eligible for the small business tax offset, your annual turnover must be less than $5 million per year. You don’t need to claim the offset. It will be automatically calculated for you by the Australian Taxation Office when you submit your tax return for the 2020/2021 financial year.

Big Business

Company tax rate

If your small business is a company and you have an annual turnover less than $50 million, your company tax rate has dropped from 27.5% to 26% from July 1 this year.

These tax measures are in addition to other measures to help Australian businesses to cope with the economic impact of the coronavirus restrictions:

· an increase in the instant asset write-off scheme.

· tax-free cash flow boosts of up to $100,000 if your business employs staff.

We are here to support you

How we can help

At Scorpion Bookkeeping, we can provide you with bookkeeping support services to help you run your business. We currently provide bookkeeping support services to a diverse range of clients in South Australia, Victoria and New South Wales.

We can also help you to implement Xero bookkeeping software to help you. We are a Xero-certified partner.

Contact us today for a free, no-obligation consultation to find out how we can help your business!

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PO Box 1752

Virginia, SA 5120

33 Warwick Street

Walkerville, SA 5081

Shop 4, 6-14 Metro Parade

Mawson Lakes, SA 5095

Unit 6, 33 Murray Street

Nuriootpa, SA 5355

Tel: 1300 911 571

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