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.