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
FBT Car 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 2017/18                                          Resident Individual Rates for 2016/17       

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 - $87,000	$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
$87,001- $180,000	$19,822 plus 37c for each $1 over $87,000	$87,001- $180,000	$19,822 plus 37c for each $1 over $87,000
Over $180,000	$54,232 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 2017/18.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2016/17.

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 2016/17.

Click here and then scroll down to access the acceptable amounts for 2015/16.

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.

Fringe Benefits Tax (FBT) Car Calculator

This FBT car calculator is provided by the Australian Taxation Office and determines the taxable value of a car fringe benefit using either the statutory formula method or the operating cost method.

The base value of a car under the statutory formula method is the GST inclusive cost, including dealer and delivery charges and non-business accessories (e.g. air conditioning and stereo). Registration and stamp duty on transfer are excluded. Note the base value of the car can be reduced by one third after the car has been held for four full FBT years. For example if a car was purchased on 15 April 1998 (i.e. in the 1999 FBT year), the base value would be reduced by one third at the commencement of the 2004 FBT year (i.e. from 1 April 2003) and future FBT years.

When using the operating cost method all costs are inclusive of GST. Deemed operating costs refer to deemed depreciation and interest and are both calculated in much the same way as depreciation using the relevant car depreciation rate and statutory interest rate. Deemed operating costs only apply if the car is owned (including on hire purchase) and not leased. The cost of the car upon which these deemed costs are calculated is inclusive of GST.

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 $
2010	57,180
2011	57,466
2012	57,466
2013	57,466
2014	57,466
2015	57,466
2016	57,466
2017	57,581
2018	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 

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

Other Superannuation Thresholds for 2017/18

• 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 $1,445,000 from $1,415,000. 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 $200,000 from 195,000. 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 $52,760 from $51,620 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 $36,813, up from $36,021. This is the threshold above which the maximum co-contribution amount of $500 begins to taper.
• Government Co-Contribution higher income threshold – increased to $51,813, up from $51,021. 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

 

Disclaimer

This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.

The firm disclaims all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on this information.