Tax offset for unincorporated small businesses

The Small Business Income Tax Offset provides unincorporated small businesses with a tax offset of up to $1,000 per year.

The offset is worked out on the proportion of tax payable on your business income and the ATO will calculate the amount based on your business income.

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, and have an aggregated turnover of less than $5 million for the 2016–17 income year onwards.

The ATO will work out the amount of your offset based on your business income.