If you run your business as a sole trader or receive a share of small business income from a trust or partnership, don’t forget you may be able to save up to $1,000 on your tax bill by claiming the small business income tax offset.
The offset is worked out based on the proportion of income tax payable on your business income.
Your business aggregated turnover must be less than the relevant threshold – see the following table:
|Income Year (s)||Aggregated turnover threshold||% Rate of offset||Maximum offset amount|
|2017 – 2020||$5,000,000||8%||$1,000|
Note! You cannot claim the small business income tax offset if you run your business through a company. Talk to your tax agent about what other small business tax concessions you may be eligible for.
Read our complete February 2019 Taxwise Business Newsletter here