How to reduce your tax in FY24

The Australian Taxation Office has reminded small businesses they may be eligible for tax concessions.

Businesses with an aggregated turnover of less than $2 million can qualify for capital gains tax (CGT) concessions, including the small business 15-year exemption, small business 50% active asset reduction, small business retirement exemption and small business roll-over.

These concessions are available when businesses dispose of an active asset. If you have more than one capital gain for the year, you can apply multiple CGT concessions until each capital gain is reduced to zero.

Businesses with an aggregated turnover of less than $5 million can access the small business income tax offset. To be eligible, you must be operating as a sole trader, or have a share of net income from a partnership or trust.

Businesses with an aggregated turnover of less than $10 million can access the small business restructure roll-over. This allows businesses to transfer active assets from one entity to another without incurring an income tax liability.

Please consult a tax professional to check how these concessions would apply to your business.