It’s Tax Time 2016! What you need to know about the key changes

Proposed Key changes

There are a number of proposed key changes and new measures to be aware of when completing your return this Tax Time, including the tax concessions for small business.


  • Instant asset write-off – qualifying small businesses can still claim an immediate deduction for business assets purchased costing less than $20,000 through to 30 June 2017.
  • Accelerated depreciation for primary producers – primary producers are reminded about the new rules from the 2015-16 Budget for claiming deductions for fencing and water facilities.
  • Company tax cuts for small business – the company tax rate was reduced to 28.5% from 1 July 2015 for small businesses with a turnover of less than $2 million and is proposed to be reduced to 27.5% from 1 July 2016 for businesses with an aggregated turnover of less than $10 million, though legislation has not yet been passed to bring in this change.  Note: Companies that are investment or beneficiary companies the 2016 tax rate remains 30%.
  • Immediate deductions for start-up costs – small businesses are reminded that they can continue to deduct a range of start-up expenses (which began on 1st July 2015).
  • Small business income tax offset – unincorporated small businesses can claim a tax offset of 5% of income tax payable up to $1,000. It is proposed the percentage be increased over the next 10 years from 5% to 16% (with the $1,000 cap per individual being retained), though legislation has not yet been passed to bring in this change.