Small Business Tax
Below is a range of useful tax rates for small and medium sized businesses. Included are individual marginal tax rates, company tax rates, reasonable domestic and overseas travel claim allowances, PAYG withholding calculator, fringe benefits (FBT) car calculator, motor vehicle kilometre rates, concessional and non-concessional superannuation contributions limits, plus other superannuation and GST thresholds.
Click on your selection:
Resident Individual Rates
Reasonable Travel Allowance Claims for Domestic & Overseas Travel
Goods Taken from Stock for Private Use by Business Owners
Company Tax Rates
PAYG Withholding Calculator
Motor Vehicle Depreciation Cost-Limit
Per Kilometre Motor Vehicle Rates
Taxation of Complying Superannuation Funds
Concessional Superannuation Contribution Limits
Other Superannuation Thresholds for 2017/18
GST Thresholds
Resident Individual Rates for 2018/19 Resident Individual Rates for 2016/17 and 2017/18
Taxable Income
|
Tax on this income
|
Taxable Income
|
Tax on this income
|
0 - $18,200
|
Nil
|
0 - $18,200
|
Nil
|
$18,201 - $37,000
|
19c for each $1 over $18,200
|
$18,201 - $37,000
|
19c for each $1 over $18,200
|
$37,001 - $90,000
|
$3,572 plus 32.5c for each $1 over $37,000
|
$37,001 - $87,000
|
$3,572 plus 32.5c for each $1 over $37,000
|
$90,001- $180,000
|
$20,797 plus 37c for each $1 over $90,000
|
$87,001- $180,000
|
$19,822 plus 37c for each $1 over $87,000
|
Over $180,000
|
$54,097 plus 45c for each $1 over $180,000
|
Over $180,000
|
$54,232 plus 47c for each $1 over $180,000
|
Resident Individual Rates for 2014/15 and 2015/16 Resident Individual Rates for 2012/13 and 2013/14
Taxable Income
|
Tax on this income
|
Taxable Income
|
Tax on this income
|
0 - $18,200
|
Nil
|
0 - $18,200
|
Nil
|
$18,201 - $37,000
|
19c for each $1 over $18,200
|
$18,201 - $37,000
|
15c for each $1 over $18,200
|
$37,001 - $80,000
|
$3,572 plus 32.5c for each $1 over $37,000
|
$37,001 - $80,000
|
$3,572 plus 32.5 for each $1 over $37,000
|
$80,001- $180,000
|
$17,547 plus 37c for each $1 over $80,000
|
$80,001- $180,000
|
$17,547 plus 37c for each $1 over $80,000
|
Over $180,000
|
$54,547 plus 47c for each $1 over $180,000
|
Over $180,000
|
$54,547 plus 45c for each $1 over $180,000
|
Resident Individual Rates for 2010/11 and 2011/12 Resident Individual Rates for 2009/10
Taxable Income
|
Tax on this income
|
Taxable Income
|
Tax on this income
|
0 - $6,000
|
Nil
|
0 - $6,000
|
Nil
|
$6,001 - $37,000
|
15c for each $1 over $6,000
|
$6,001 - $35,000
|
15c for each $1 over $6,000
|
$37,001 - $80,000
|
$4,650 plus 30c for each $1 over $37,000
|
$35,001 - $80,000
|
$4,350 plus 30c for each $1 over $35,000
|
$80,001- $180,000
|
$17,550 plus 37c for each $1 over $80,000
|
$80,001- $180,000
|
$17,850 plus 38c for each $1 over $80,000
|
Over $180,000
|
$54,550 plus 45c for each $1 over $180,000
|
Over $180,000
|
$55,850 plus 45c for each $1 over $180,000
|
Notes on tax rates
- Taxable income includes capital gains.
- Medicare levy is imposed at the rate of 2% of taxable income from 1 July 2014 (previously 1.5%) is not included.
- 2% temporary budget repair levy applies where taxable income exceeds $180,000 and is included in the 2014/15, 2015/16 and 2016/17 rates.
- Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.
- Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months.
Reasonable Travel Allowance Claims for Domestic & Overseas Travel
Where an employee, company director, or office holder receives an allowance for travel costs within or outside Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.
The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.
Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2018/19.
Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2017/18.
Goods Taken from Stock for Private Use by Business Owners
The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.
Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.
Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.
Click here and then scroll down to access the acceptable amounts for 2017/18.
Click here and then scroll down to access the acceptable amounts for 2016/17.
Company Tax Rates
The standard company tax rate is 30%. However from the 2015/16 year onwards, this rate will be progessively reduced based on turnover and other tests as follows:
Income Year
|
Applicable Turnover Threshold ($)
|
Company Tax Rate (%)
|
2015-16
|
2 million
|
28.5
|
2016-17
|
10 million
|
27.5
|
2017-18
|
25 million
|
27.5
|
2018-19
|
50 million
|
27.5
|
2019-20
|
50 million
|
27.5
|
2020-21
|
50 million
|
27.5
|
2021-22
|
50 million
|
27.5
|
2022-23
|
50 million
|
27.5
|
2023-24
|
50 million
|
27.5
|
2024-25
|
50 million
|
27
|
2025-26
|
50 million
|
26
|
2026-27
|
50 million
|
25
|
Notes
Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.
Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.
PAYG Withholding Calculator
This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.
Click here to access the calculator.
Motor Vehicle Depreciation Cost-Limit
Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.
Income Year
|
Depreciation Cost Limit $
|
2011
|
57,466
|
2012
|
57,466
|
2013
|
57,466
|
2014
|
57,466
|
2015
|
57,466
|
2016
|
57,466
|
2017
|
57,581
|
2018
|
57,581
|
2019
|
57,581
|
Per Kilometre Motor Vehicle Rates
These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.
The rates are based on the engine size of the car and are as follows:
Engine Capacity (non-rotary engine)
|
Engine capacity (rotary engine)
|
Rate per Kilometre (cents)
|
2009/10 year
|
2010/11 year
|
2011/12 year
|
2012/13 year
|
2013/14 year
|
2014/15 year
|
Up to 1,600cc
|
Up to 800cc
|
63
|
63
|
63
|
63
|
65
|
65
|
1,601 to 2,600cc
|
801 to 1,300cc
|
74
|
74
|
74
|
74
|
76
|
76
|
Over 2,600cc
|
Over 1,300cc
|
75
|
75
|
75
|
75
|
77
|
77
|
The above three rates have been replaced with a single rate commencing with the 2015/16 year as follows:
2016/16 Year: 66 cents per kilometre
2016/17 Year: 66 cents per kilometre
2017/18 Year: 66 cents per kilometre
2018/19 Year: 68 cents per kilometre
Taxation of Complying Superannuation Funds
Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.
Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.
The following changes apply from 1 July 2017:
- the tax exemption for assets supporting a transition to retirement income stream (TRIS) has been removed. This change applies irrespective of when the TRIS commenced.
- there is a $1.6 million cap on the amount of superannuation benefits that an individual can have in pension phase which is not subject to tax. The excess over this amount will need to be withdrawn by the member or maintained in an accumulation phase account where earnings are taxed at the rate of 15%.
Concessional Superannuation Contribution Limits
The following contribution limits apply from 1 July 2017:
- A single annual concessional contributions cap of $25,000 applies to all individuals.
- Individuals under age 75 are entitled to claim a tax deduction for personal superannuation contributions, subject to meeting the work test upon attaining the age of 65.
- the threshold at which high income earners pay additional contributions tax of 15% is $250,000.
- the annual non-concessional (after-tax) contribution cap is $100,000 per year, and $300,000 under the 3 year bring-forward rule.
Other Superannuation Thresholds for 2018/19
- Super guarantee (SG) rate - remains at 9.5% of ordinary times earnings. The next rate rise is due on 1 July 2021 where it will increase to 10% as part of the Government’s initiative to increase the SG rate to 12% by 2025.
- Capital Gains Small Business contributions cap – increased to $1,480,000 from $1,445,000. The CGT cap amount is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
- Low rate tax cap – increased to $205,000 from $200,000. The low rate cap is the lump sum amount that can be withdrawn tax-free over a lifetime for people that have reached their preservation age, but are not yet 60.
- Maximum super guarantee contributions base – increased to $54,030 from $52,760 per quarter. Employers don’t have to provide the minimum super support for the part of earnings above this limit.
- Government Co-Contribution lower income threshold – increased to $37,697 from $36,813. This is the threshold above which the maximum co-contribution amount of $500 begins to taper.
- Government Co-Contribution higher income threshold – increased to $52,697 from $51,813. This is the threshold above which the co-contribution will not be paid.
GST Thresholds
Item
|
* Threshold
|
Requirement to issue a tax invoice
|
$75
|
No requirement to withhold if supplier does not quote ABN
|
$75
|
Turnover for compulsory registration for GST
|
$75,000 (for any 12 months)
|
Turnover for compulsory registration for GST (non-profit entity)
|
$150,000 (for any 12 months)
|
Annual turnover for compulsory use of non-cash accounting
|
$10,000,000
|
Annual turnover for compulsory monthly electronic BAS lodgement
|
$20,000,000
|
* all amounts are GST exclusive