Small business tax offset

If you are a small business, you also have access to a discount. The discount is 16% of the income tax payable on the business income received from an unincorporated (not company) small business entity. It’s capped at $1,000 per individual for each income year. It’s delivered as a non-refundable tax offset. A tax offset reduces the amount of tax payable on your taxable income in your annual individual tax return. This means it isn’t a cash payment.

Where a partnership incurs a loss for an income year, that loss is an allowable deduction to each partner, based on their interest in the partnership. Being able to deduct your share of a partnership loss is one of the main benefits of using a partnership as a business structure.

Starting a small business

Steps Progress

Is my hobby a business?

9 mins

Business structures overview

5 mins

Business registrations

5 mins

Sole trader structure

7 mins

Partnership structure

10 mins

Company structure

13 mins

Trust structure

7 mins

Small business support

10 mins

Related courses

1 mins

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