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More Tax Changes for Small Business

The government has introduced legislation for the following three small business measures that, if passed, will apply from 1 July 2015:

• A tax offset to individuals who run small businesses (with an aggregate annual turnover of less than $2 million), or who have a share of a small business’ income included in their assessable income.
  
  The tax offset is available to individuals, partners, or beneficiaries of a trust that is a small business entity.
  
  The tax offset is 5% of the income tax payable on the portion of an individual’s income that is small business income, capped at $1,000 per annum.
  
• An immediate deduction for some business start-up expenses, such as legal advice and registration fees, including government fees and charges as well as costs associated with raising capital.
  
• An exemption from FBT where small businesses provide an employee with more than one work-related portable electronic device, even where the devices have substantially identical functions.