,000** each year. To be eligible, you must be a small business entity (sole trader) with an aggregate turnover of less than $5 million. The offset is 16% of the tax payable on your business income, capped at ,000. The ATO calculates this automatically based on the business income labels in your tax return. It is a 'non-refundable' offset, meaning it can re"}}]}

What is the Small Business Income Tax Offset in Australia?

The Small Business Income Tax Offset (also known as the unincorporated small business tax discount) can reduce the tax you pay by up to **$1,000** each year. To be eligible, you must be a small business entity (sole trader) with an aggregate turnover of less than $5 million. The offset is 16% of the tax payable on your business income, capped at $1,000. The ATO calculates this automatically based on the business income labels in your tax return. It is a 'non-refundable' offset, meaning it can reduce your tax to zero, but it won't result in a refund if you don't owe any tax.

  • Up to $1,000 tax reduction annually
  • Available for turnover under $5 million
  • Calculated automatically by the ATO on your return
  • Only applies to the business portion of your income
  • Non-refundable offset