Small businesses have access to a range of tax concessions. This suits to sole traders, partnerships, companies or trusts.
For these concessions, you’ll need to check whether your business is a ‘small business entity’ for the year.In general, the entity is a ‘small business entity’ if its aggregated turnover is less than $2 million.Your aggregated turnover is your gross income or proceeds (rather than your net profit) for an income year.
When working this out you need to:
– include the annual turnover of any company you are connected with
– exclude any goods and services tax (GST) amounts you have charged on your sales.
You must review your eligibility each year.
If you don’t qualify as a small business in an income year, you may still be eligible for the CGT concessions if you get net assets of $6 million or less. If your gross ordinary income plus statutory income is less than $10 million,you may also be eligible for the Fringe Benefits Tax car parking exemption.