There have been some big tax changes for 2021- we simplify what you need to know for small businesses.
Offset to Previous Taxes:
Eligible companies are able to carry back a tax loss from the 2019–20, 2020–21 or 2021–22 income years to offset previously taxed profits in the 2018–19 or later income years
Concessions:
A range of small business concessions are available for medium business entities (with an aggregated turnover of $50 million), being phased in from 1 July 2020 to 1 July 2021
Threshold Brackets:
From 1 July 2020, the top threshold of the 19% personal income tax bracket is increased from $37,000 to $45,000.
The top threshold of the 32.5% bracket is increased from $90,000 to $120,000.
Depreciating Assets:
Small business entities and medium business entities are eligible for the temporary full expensing of depreciating assets (including second-hand assets) acquired from 7.30 pm AEDT on 6 October 2020 until 30 June 2022
PAYG:
To assist businesses affected by COVID-19, the ATO will not apply penalties and interest on excessive PAYG instalment variations for the 2020–21 income year.
Employers with an aggregated turnover of up to $50 million will be eligible for the work-related items exemption on multiple items from 1 April 2021
There’s plenty more information to wade through- if you need assistance on clarifying anything tax and small business, find more information on here or contact us today.
