- 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
- Understanding Reconciliation for Small Business Entity (SBE)
- Simpler Depreciation for Small Business
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 manually fill 10A in Depreciation tab if not using the Tools>Depreciation and 6X in Proft&Loss if no import was made.
If you have imported your Financials from any accounting software, you need to map the depreciation as a Small Business Immediate Write Off or General Pool Write Off as shown below.
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:
