Announced in the 2016-17 budget, the move allows businesses with a turnover of less than $10 million to access concessions that were only previously available to entities with a turnover of less than $2 million.
IPA chief executive officer Andrew Conway said the change was long overdue, and the $20,000 instant asset write-off scheme and tax breaks would greatly benefit businesses.
“The small business threshold has not been indexed since it was introduced, so an uplift is warranted but it is a pleasant surprise for it to be raised to $10 million as announced in last year’s budget,” Mr Conway said.
“This means that small businesses with a turnover of up to $10 million will now have certainty on tax concessions that will be applied for this current financial year as they apply from 1 July 2016.
“Entities with a turnover of up to $10 million are more likely to generate greater economic benefits as they are generally employing entities, compared to the 61 per cent of entities with a turnover below $2 million which do not employ staff.”
