The Institute of Public Accountants (IPA) has commended the Government’s move for small business to gain access to most tax concessions by moving the small business threshold from $2M to $10M.

“Moving the small business threshold goal post is long overdue and while it doesn’t apply to small business capital gains tax concessions, many small businesses will appreciate having access to the suite of small business concessions (eg lower company tax rate, $20K instant asset write off),” said IPA chief executive officer, Andrew Conway.

“The small business threshold has not been indexed since it was introduced so an uplift is warranted but it is a pleasant surprise for it to be raised to $10M as announced in last year’s budget.

“This means that small businesses with a turnover of up to $10M will now have certainty on tax concessions that will be applied for this current financial year as they apply from 1 July 2016. 

“Entities with a turnover of up to $10M are more likely to generate greater economic benefits as they are generally employing entities, compared to the 61 per cent of entities with a turnover below $2M which do not employ staff.

“This is a great result for small businesses considering that the measures had stalled in the Senate until the last sitting day before the Federal budget,” said Mr Conway.