• Eligibility

    To work out if you are eligible for small business entity concessions, you first need to work out if you are a 'small business entity' in an income year. You must review your eligibility each year to check if you are able or required to use a particular concession.

    From 1 July 2016, you are a small business entity if you are a sole trader, partnership, company or trust that:

    • operates a business for all or part of the income year, and
    • has an aggregated turnover less than $10 million (the turnover threshold).

    From here on, when we say:

    • 'small business', we mean 'small business entity'
    • 'turnover', we mean 'aggregated turnover'.

    From 1 April 2017, the turnover threshold for fringe benefits tax (FBT) concessions increased to $10 million.

    The $10 million turnover threshold applies to most concessions, except for:

    • the small business income tax offset, which has a $5 million turnover threshold
    • the capital gains tax (CGT) concessions, which continue to have a $2 million turnover threshold.

    For previous income years, you are a small business if your turnover is less than $2 million.

    Find out about:

    See also:

    • Are you in business? – determine the differences between a hobby and a business for tax purposes
    Last modified: 15 Sep 2017QC 50252