Small business entity is not just a label, it is a key. Aggregated turnover under $10 million opens a menu of concessions, and in our experience a surprising number of eligible businesses use one or two and forget the rest. With 2025-26 returns being prepared right now, this is the week to run the checklist.
The menu worth checking
- Simplified depreciation and the instant asset write off. Assets under the threshold written off immediately, the rest pooled at accelerated rates.
- Prepayment deductions. Prepay up to 12 months of rent, insurance or subscriptions before 30 June and deduct it all this year. A classic profit smoothing lever people remember in August, one month too late for last year but perfectly timed to plan for this one.
- GST on a cash basis. Pay GST when customers actually pay you, not when you invoice. For anyone with slow payers, this is pure cash flow relief.
- Simplified trading stock rules. Skip the formal stocktake when your stock value has moved by $5,000 or less.
- Two year amendment period. Most small businesses get shorter review windows than the four years that apply to larger entities.
- The small business income tax offset for unincorporated businesses with turnover under $5 million.
The catch to know about
Different concessions carry different turnover tests. Most use $10 million, the income tax offset uses $5 million, and the famous CGT small business concessions still turn on the $2 million turnover test or the $6 million net asset test. Eligibility is assessed every year, so a growth year can quietly close doors. That is worth knowing before you sell anything big.
Ten minutes with your accountant against this list, once a year, is some of the best value advice money buys.