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 (CBE)

For the 2025 income year, the lower company tax rate for eligible Small Business Entities is 27.5%. 

To apply this lower tax rate in LodgeiT:

Go to Settings > General and ensure the entity is marked as a Small Business Entity

In Settings > Depreciation, tick the box to "Use simplified depreciation rules (only for SBE)".

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

Important Notes on Depreciation for SBE

  • Accounting depreciation must equal or be less than the deductible depreciation for tax purposes to use the Small Business Entity Depreciation Method.
  • LodgeiT implements logic consistent with ATO rules:

            > For an SBE, item 6X (depreciation expense) must equal the sum of items 10A + 10B (depreciation components).

            > Because of this, no reconciliation is needed for depreciation amounts entered for SBEs.. Learn more from the ATO


Understanding Reconciliation for Small Business Entity (SBE)

Depreciation related to non-deductible expenses is not imported when SBE rules apply

When importing financials, depreciation should be mapped correctly as either "Depreciation" or "Small Business Immediate Write-Off" depending on classification.


Users must manually enter item 10A in the Depreciation tab if they do not use the Depreciation Tool or if no import has been made.

As per ATO rules or SBEs, item 6X must match item 10A + 10B, eliminating the need for further reconciliation.

Simpler Depreciation for Small Business

General Pool Depreciation and Immediate Write-Off Depreciation amounts are not deducted and added back in items 7W and 7F, respectively. This simplifies calculations and aligns with the ATO’s Simpler Depreciation for Small Business regime.

Ato ref link: 

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