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myTax 2017 Small business income tax offset

How to complete the small business income tax offset sections of your tax return using myTax.

Last updated 15 August 2017

The maximum offset is $1,000 per year per person from all your small businesses..

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Report your business income in two places

Amounts you enter at the Small business income tax offset question are only used to work out your tax offset. They are not included in your taxable income.

To make sure your taxable income and tax offset are correct, you must report your business income in two places:

  • at Business income or losses in the Business/sole trader, partnership and trust income (including loss details) section – these amounts count towards your taxable income. You must also report the following business income/loss at the relevant sections:
    • foreign business income
    • net farm management deposits or repayments
    • interest and dividend income from carrying on your business
  • at Small business income tax offset in the Offsets section – these amounts are only used to work out your tax offset.

Eligible income

Only include income that is eligible for the offset. The offset is worked out on your net income (not gross income), which is your:

  • sole trader net small business income (business income after deductions)
  • share of partnership or trust net small business income less your deductions relating to that share.

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Income not eligible for this offset

The following types of income are not eligible:

  • personal services income (unless from a personal services business)
  • salary and wages
  • director's fees
  • government payments
  • interest and dividends (unless related to a business activity).

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