Small Business Entity Concessions

Small businesses have access to a range of tax concessions. This applies to sole traders, partnerships, companies or trusts.

To qualify for these concessions, you'll need to check whether your business is a 'small business entity' for the year in question.

In general, to meet this requirement, your aggregated turnover must be less than $2 million.

Your aggregated turnover is your gross income or proceeds (rather than your net profit) for an income year. When working this out you need to:

  • Include the annual turnover of any entity you are connected with or that is an affiliate of yours at any time during that income year
  • Exclude any goods and services tax (GST) amounts you have charged on your sales.

You must review your eligibility each year.

If you don't qualify as a small business in an income year, you may still be eligible for the CGT concessions if you have net assets of $6 million or less. You may also be eligible for the Fringe Benefits Tax car parking exemption if your total ordinary income plus statutory income is less than $10 million.

Q12016Cristy Houghton