Small Business

It has been announced (Joint Press Release No 123 Minister for Small Business and Tourism) that legislation will be introduced to standardise the eligibility criteria for small business tax concessions, effective 1 July 2007.

Any business with annual turnover below $2 million will be able to access concessions on GST, the Simplified Tax System, Capital Gains Tax, Fringe Benefits Tax and Pay As You Go.

It will be possible for small business to choose the concessions which meet its needs. It is estimated the result will be reduced compliance costs for some 2 million businesses, or 96 per cent of Australian business undertakings.

Businesses which presently access Capital Gains Tax, Fringe Benefits Tax or Pay As You Go small business concessions may continue to do so under either the new arrangements or the existing criteria.

It is expected there will be public consultation on draft legislation for the new measures early in 2007.