09 May 066 Aligning definitions and thresholds in the tax lawsThe Government will simplify and improve alignment of various small business tax relief arrangements contained in the tax laws, including the STS, CGT, GST, FBT and pay as you go (PAYG) instalments. This measure will apply from the start of the 2007-08 income year.
This measure will:
- increase the STS annual turnover threshold from $1m to $2m;
- remove the $3m depreciating assets test from the STS eligibility requirements;
- increase the net assets threshold for the CGT small business concessions from $5m to $6m; and
- allow STS taxpayers to be eligible for the CGT small business concessions without having to satisfy the net assets threshold and to pay quarterly PAYG instalments on the basis of GDP adjusted notional tax.
The Government will consult on the development of the legislation to implement these changes to ensure that some taxpayers are not inadvertently excluded from accessing these broader tax relief arrangements.
For a copy of the Treasurer's press release No 39, 9 May 2006, go here