Is your Business a Small Business?

What is a Small Business?

From 1 July 2016, you are a small business if you are a sole trader, partnership, company or trust that has a turnover less than $10 million.

From 1 July 2021 – businesses that are not small businesses because their turnover is $10 million or more but less than $50 million may also be eligible to access these small business concessions:

  • simplified trading stock rules
  • PAYG instalments concession
  • a two-year amendment period
  • excise concession.

Small Business Tax Offset

The small business income tax offset (also known as the unincorporated small business tax discount) can reduce the tax you pay by up to $1,000 each year.

The offset is worked out on the proportion of tax payable on your business income.

To be eligible, you must be carrying on a small business as a sole trader, or have a share of net small business income from a partnership or trust and have an aggregated turnover of less than $5 million for the 2016–17 income year onwards.

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