To get the lower rate of 27.5%,
Select "Settings", then "Depreciation"
Tick the box "Use simplified depreciation rules (only for SBE)".
Enable "YES" for "Its a base rate entity" via tax form first page.
- Please make sure that the Depreciation in the accounts equals the Deductible Depreciation for tax purposes if you want to use Small Business Entity Depreciation Method.
- Accounting depreciation should not be greater than SBE Depreciation.
- We've changed the logic for Small Business Entities. As per ATO rules if it's SBE than 6X must be equal to sum of 10 A+B and there is no need for reconciliation. Learn more from the ATO