• Step 2 – Work out if you are controlled by any exempt entities

    Once you've worked out that you do meet the initial eligibility requirements, you will also need to work out if you are controlled by one or more exempt entities because this too will affect which tax offset you can claim.

    An exempt entity is an entity whose ordinary and statutory income is exempt from income tax; or a Commonwealth entity that does not pay tax.

    If you are controlled by one or more exempt entities, you cannot claim the 43.5% refundable offset but you can claim the 38.5% non-refundable tax offset instead. If this is the case, you don't need to take your aggregated turnover into account to work out which offset you can claim, and you can go to Step 4 - Work out which tax offset you can claim

    If you are not controlled by one or more exempt entities you may be entitled to claim the refundable 43.5% tax offset, if your aggregated turnover is less than $20 million.

    To work out if your company is controlled by one or more exempt entities, you will need to consider if one or more exempt entities, their affiliates or both have either:

    • shares and other equity interests in your company that give them and/or their affiliates at least 50% of the voting power in your company
    • the right to receive at least 50% of any income or capital your company distributes.

    Next step:

    Last modified: 25 Oct 2016QC 24603