Don’t forget about the small business income tax offset

If you run your business as a sole trader, or receive a share of small business income from a trust or partnership, don’t forget you may be able to save up to $1,000 on your tax bill by claiming the small business income tax offset.

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

Your business aggregated turnover must be less than the relevant threshold – see the following table:

Income Year (s) Aggregated turnover threshold % Rate of offset Maximum offset amount
2016 $2,000,000 5% $1,000
2017 – 2020 $5,000,000 8% $1,000
2021 $5,000,000 13% $1,000
2022 $5,000,000 16% $1,000

You cannot claim the small business income tax offset if you run your business through a company. Talk to your tax agent about what other small business tax concessions you may be eligible for.

Comments are closed.

Post Navigation

Newsletter Archives

Client Information Archives

business news July 2019 Business newsletter - November 2019 Business Newsletter - September 2019 car expenses motor vehicle expenses single touch payroll small business Small Business - March newsletter Special Budget Edition 2019-20 vehicle expenses