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.