This video demonstrates methods for - 
  • Setting a start date. Learn more 
  • Adding the General Pool Group
  • Adding the General Pool with an opening balance
  • Adding an asset to the pool
  • Adding financial statements with included tax depreciation
  • Inspecting the outcome of the depreciation in the tax return

Topic:


Company Tax Rates for small business entities

To get the lower rate of 27.5% ( for 2021 FY lower rate is 26%)

Select "Settings", then "Depreciation"

Make sure "its a small business entity"  is activated via Settings > General. 

Tick the box "Use simplified depreciation rules (only for SBE)". 

Enable "YES" for "Its a base rate entity" via tax form first page.

Note: 

- 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


Understanding Reconciliation for Small Business Entity (SBE)

Small business depreciation isn’t imported for non-deductible expenses in case of SBE rules. User only needs to fill 10A in Depreciation tab and 6X in Proft&Loss.  Learn more about reconciliation here
Item 10A -

Item 6X -

As per ATO rules if it's SBE, 6X must be equal to sum of item 10 A+B and there is no need for reconciliation. 

Simpler Depreciation for Small Business

General Pool Depreciation and Immediate Write Off Depreciation won't be deducted and added back at 7W & 7F.

Ato ref link: 

https://www.ato.gov.au/business/depreciation-and-capital-expenses-and-allowances/simpler-depreciation-for-small-business/