Am I eligible for the small business entity concessions?

Small businesses have access to a range of tax concessions. This information will help you work out if you are running a small business in an income year. You must review your eligibility each year.

When we say 'business' we mean the individual, partnership, company or trust that carries on the business activity. When we say 'small business' we mean 'small business entity', which is an individual, partnership, trust or company with aggregated turnover less than $2 million.

Are you a small business for the current year?

You are a small business if you are an individual, partnership, company or trust that does both of the following:

operates a business for all or part of the income year
has less than $2 million aggregated turnover.

For more information about what it means to carry on a business, refer to:

Am I in business? (NAT 2598)

Taxation Ruling TR 97/11 - Income tax: am I carrying on a business of primary production? (The examples used in this ruling relate to primary production activities but the principles can be applied to other activities.)

Aggregated turnover

Generally, aggregated turnover is your annual turnover plus the annual turnover of any business you are connected with or that is your affiliate.

You must use the aggregation rules to work out if you need to include another business' annual turnover in your aggregated turnover. These rules stop larger businesses splitting their activities to inappropriately access small business concessions.

For more information, see What are the aggregation rules?

Sections within Are you a small business for the current year?

Last Modified: Tuesday, 8 January 2013