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In a move that has flown under the radar, the government has moved to broaden the definition of a small business, which increases the availability of tax concessions to a broader range of businesses.
Speaking to Accountants Daily after the federal budget yesterday evening, the Institute of Public Accountants’ (IPA) Tony Greco explained that the definition of a small business has now gone from businesses with an annual turnover of $2 million to $10 million.
“So the bag of goodies will be available to more businesses,” said Mr Greco.
Those entities will have access to a suite of tax concessions, including the $20,000 instant asset write-off.
They will also have access to a lower corporate tax rate.
“It’s really a game changer for them,” Mr Greco said.
“We expect an economic dividend from the tax concessions being granted to those suite of people,” he said.
“We are very encouraged by moving the tax concessions up the food chain to those larger entities – they are the ones who employ people,” he said.
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