Overview
If you're an eligible business, you can access a range of concessions to help reduce the amount of tax you pay. As each concession has different eligibility requirements, including turnover, check your eligibility each year before applying the concession.
Small business concessions
If you're an eligible small business you can access a range of concessions, including for payment and reporting options. This applies to sole traders, partnerships, companies and trusts. There are varying eligibility requirements for different concessions. Check your eligibility each year before you apply a concession.
Small business concessions based on aggregated turnover
Eligible small businesses can access a range of concessions based on aggregated turnover. This applies to sole traders, partnerships, companies and trusts.
Besides aggregated turnover, most small business concessions have extra eligibility conditions. Check your eligibility each year before you apply a concession.
If you have an aggregated turnover less than:
- $2 million, you can access the small business CGT concessions
- $5 million, you can access the small business income tax offset
- $10 million, you can access the small business restructure roll-over.
For aggregated turnovers under $10 million, you generally have a 2 year time limit, from the day we issued your notice of assessment, to object to or amend your assessment.
On or after 1 July 2021, if your aggregated turnover is less than $50 million, the 2 year time limit also applies to your assessment for a financial year.
Primary producer concessions
If you are a primary producer, special tax concessions may affect which amounts you include in your assessable income each year. These concessions also affect when you have to pay your income tax, as you may be able to make 2 pay as you go (PAYG) instalments each year, instead of 4.
Primary producers also have access to primary production averaging, which may allow you to pay a lower tax rate in years where you earn above-average income. To be eligible for special concessions for primary producers you must meet our definition of carrying on a business of primary production, which considers the size or scale of your business and its profitability.
Primary producers operating as an individual or in partnership can also benefit from exceptions to the non-commercial losses rules. These rules would normally restrict you from offsetting your losses from a non-commercial business activity against your other assessable income. Those restrictions don’t apply if your income from other sources (excluding net capital gains) is less than $40,000.
Special professionals, sportspersons and entertainers concessions
Some special professionals, sportspersons and entertainers qualify for income averaging. This may allow you to pay a lower tax rate in years where you earn above-average income.
You may qualify for income averaging if you are:
- an artist
- an author
- a composer
- an inventor
- a performing artist
- a production associate
- a sportsperson.
You may also be able to make 2 PAYG instalments each year instead of 4. We will send you a letter if you are eligible for this option.
Eligible businesses can access a range of concessions to help reduce the amount of tax they pay.