Tax offset for unincorporated small businesses

The Small Business Income Tax Offset provides unincorporated small businesses with a tax offset.

Overview

The Small Business Income Tax Offset provides small businesses with a tax offset of up to $1000 per year. The offset is worked out on the proportion of tax payable on your business income.

The Australian Taxation Office (ATO) will work out the amount of your offset based on your business income.

What are the eligibility criteria?

To be eligible, you must:

• be carrying on a small business as a sole trader, or have a share of net small business income from a partnership or trust
• have an aggregated turnover of less than $5 million for the 2016-17 income year onwards

How do you apply?

There is no application required. The Australian Taxation Office will work out your offset when you lodge your tax for the relevant year.

Find out more about eligibility and how to apply at Small Business Income Tax Offset.