Tax Facts

Small Business Tax

Below is a range of useful tax rates for small and medium sized businesses that apply for the 2024-25 year including:

- individual marginal tax rates

- company tax rates

- reasonable domestic and overseas travel allowance amounts

- acceptable amounts for goods taken from stock for private use by business owners

- motor vehicle thresholds

- motor vehicle cents per kilometre rate

- concessional and non-concessional superannuation contributions limits

- other superannuation thresholds

- GST thresholds

Resident Individual Tax Rates - 2024-25 year 

TAXABLE INCOME	TAX ON THIS INCOME
$0 – $18,200	Nil
$18,201 – $45,000	16c for each $1 over $18,200
$45,001 – $135,000	$4,288 plus 30c for each $1 over $45,000
$135,001 – $190,000	$31,288 plus 37c for each $1 over $135,000
Over $190,000	$51,638 plus 45c for each $1 over $190,000
Compulsory superannuation rate: 11.5% from 1 July 2024

Notes on tax rates

- Taxable income includes capital gains.

- Medicare levy is imposed at the rate of 2% of taxable income is not included.

- Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.

- Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

Reasonable Travel Allowance Claims for Domestic & Overseas Travel

Where an employee, company director, or office holder receives an allowance for travel costs within or outside Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.

The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2024/25

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2023/24

Goods Taken from Stock for Private Use by Business Owners

The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.

Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.

Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.

Click here and then scroll down to access the acceptable amounts for 2023/24

Click here and then scroll down to access the acceptable amounts for 2022/23

Company Tax Rates

The standard company tax rate is 30%.

From the 2017–18 income year, companies that are base rate entities must apply the lower company tax rates (see below table).

A base rate entity is a company that both:

- has an aggregated turnover less than the aggregated turnover threshold  - which is $50 million from the 2018-19 year onwards

- 80% or less of assessable income is base rate entity passive income (e.g. interest, dividends, rent, and net capital gains). 

Income Year	Applicable Turnover Threshold ($)	Company Tax Rate (%)
2017-18	25 million	27.5
2018-19	50 million	27.5
2019-20	50 million	27.5
2020-21	50 million	26.0
2021-22 and future years	50 million	25.0

Notes

Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.

Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

PAYG Withholding Calculator

This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.

Click here to access the calculator.

Motor Vehicle Thresholds

(i)  Cost limit for tax purposes

Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.

Income Year	Depreciation Cost Limit $
2017	57,466
2018	57,581
2019	57,581
2020	57,581
2021	59,136
2022	60,733
2023	64,741
2024	68,108
2025	69,674

(ii)  Luxury car tax (LCT) thresholds

For fuel-efficient vehicles (including electric cars), the threshold is $91,387.

For all other luxury vehicles, the threshold is set at $80,567. 

Per Kilometre Motor Vehicle Rates

These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.

2020/21 Year:    72 cents per kilometre

2021/22 Year:    72 cents per kilometre

2022/23 Year:    78 cents per kilometre

2023/24 Year:    85 cents per kilometre

2024/25 Year:    88 cents per kilometre

Taxation of Complying Superannuation Funds

Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.

Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.

There is currently a $1.9 million cap (applies for the 2023-24 and 2024-25 years) being the the total amount of superannuation that can be transferred into the retirement phase. The excess over the cap will need to be withdrawn by the member or maintained in an accumulation phase account where earnings are taxed at the rate of 15%.  

Superannuation Contributions Work Test 

From 1 July 2022, individuals who are aged between 67 to 74 years old are able to make non-concessional and salary sacrificed contributions without meeting the work test, subject to the existing contribution caps (refer below). 

However the work test will need to be satisfied for individuals aged between 67 and 74 to claim a deduction for personal concessional contributions. The work test requires an individual to work a minimum of 40 hours in a 30 consecutive day period at any time during the financial year.   

Personal concessional or non-concessional contributions can be accepted up to 28 days after the month in which the person reaches the age of 75. 

Concessional Superannuation Contribution Limits

Non-Concessional Superannuation Contribution Limits

From 1 July 2024, the general non-concessional (after-tax) contributions cap increased to $120,000 per year (up from $110,000) and $360,000 under the 3 year bring-forward rule.

The following table outlines the non concessional contribution and the bring forward amounts available from 1 July 2024: 

Total superannuation balance	Non concessional contribution and bring forward available
Less than $1.66 million	Access to $360,000 cap (over three years)
$1.66 million to less than $1.78 million	Access to $240,000 cap (over two years)
$1.78 million to less than $1.9 million	Access to $120,000 (no bring-forward period, general non-concessional contributions cap applies)
$1.9 million or more	Nil

The total superannuation balance is determined on 30 June of the previous financial year.

Other Superannuation Thresholds for 2024-25 Year 

• Super guarantee (SG) rate - From 1 July 2024, increased to 11.5% (from 11%) of ordinary time earnings. The rate will increase to 12% by 1 July 2025.
• Maximum super guarantee contributions base – increased to $65,070 (from $62,270) per quarter. Employers don’t need to provide the minimum super guarantee support for the part of earnings above this limit.
• Capital Gains Small Business contributions cap – increased to $1,780,000 (from $1,705,000). This is a lifetime cap on non-concessional contributions which have been sourced from the retirement or 15-year small business capital gains tax concessions. Note these contributions don't count towards the individual's non-concessional contribution limits above.  
• Low rate tax cap – increased to $245,000 (from $235,000). The low rate cap amount is the limit set on the amount of taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate of tax. It applies to members that have reached their preservation age but are below 60 years.
• Government Super Co-Contribution lower income threshold – increased to $45,400 (from $43,445). This is the threshold above which the maximum co-contribution amount of $500 begins to taper. If your total income is equal to or less than $45,400 in the 2024/25 financial year and you make after-tax contributions of $1,000 to your super fund, you’ll receive the maximum co-contribution of $500.
• Government Super Co-Contribution higher income threshold – increased to $60,400 (from $58,445). This is the threshold above which the co-contribution will not be paid.
• Low-income super tax offset - The offset is 15% of all concessional contributions made to a fund in a financial year, subject to a maximum of $500 and minimum of $10. Certain conditons apply including that the person earns less than $37,000 (of adjusted taxable income) and 10% or more of the person's total income comes from business and/or employment.

GST Thresholds

Item	* Threshold
Requirement to issue a tax invoice	$75
No requirement to withhold if supplier does not quote ABN	$75
Turnover for compulsory registration for GST	$75,000 (for any 12 months)
Turnover for compulsory registration for GST (non-profit entity)	$150,000 (for any 12 months)
Annual turnover for compulsory use of non-cash accounting	$10,000,000
Annual turnover for compulsory monthly electronic BAS lodgement	$20,000,000

* all amounts are GST exclusive 

Important Note: All drivers and owner drivers of taxi travel vehicles must register for GST as a sole trader, (regardless of their turover) unless they are an employee.