Small Business Entities

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      nFrom 2015–2016, the tax rate applicable to smallnbusiness entities that are companies is 28.5{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70} (rather than the standard 30{256a07afe6cf75b7e23500f37551d0affdf8bab65b8226b57f0b6b9aa6c8fc70}nrate) and other types of small business entities are entitled to a tax discountnin the form of a tax offset.

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      nSmall business entities are entitled to annimmediate deduction for certain pre-business expenditure incurred after 30 Junen2015.

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      nEligible small business entities can access anrange of concessions for a capital gain made on a CGT asset that has been usednin a business, provided certain conditions are met.

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      nAn optional rollover has been introduced for thentransfer of business assets from one entity to another for small businessnowners who change the legal structure of their business.

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      nA CGT “look-through” treatment for eligiblenearnout arrangements has been introduced.

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      nFrom the 2016–2017 FBT year, small businessnentities will be able to provide more than one work-related portable electronicndevice to an employee and claim the FBT exemption for each device, even if thendevices have substantially identical functions and are not replacement items.

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Important: Clients should not act solely on the basis of the material contained in Update. Items herein are general comments only and do not constitute or convey advice per se. Also, changes in legislation may occur quickly. We therefore recommend that our formal advice be sought before acting in any of the areas. This update is issued as a helpful guide to clients and for their private information.

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