What are the aggregation rules?

There are a range of tax concessions available if you are a small business. You must use the aggregation rules to work out whether you must add any other business entities' annual turnover to your annual turnover to work out your aggregated turnover.

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 an aggregated turnover of less than $2 million.

If you are aggregated with one or more other businesses, you do not need to use a particular concession just because some or all of those other businesses have chosen to use it.

When do the aggregation rules apply?

The aggregation rules will apply if another business:

• is your affiliate, or
• is connected with you.

These business entities are also called 'relevant' businesses.

If your aggregated turnover is $2 million or more, you may still be eligible for the small business CGT concessions if you satisfy the $6 million maximum net asset value test. You also use the aggregation rules to work out when another entity is your affiliate, or is connected with you, for the purposes of the $6 million maximum net asset value test.