In response to a common question being asked at the moment, the ATO has advised as follows: The tax office definition of a small business is: an individual, partnership, trust or company with aggregated turnover less than $2 million. An aggregated turnover is your annual turnover of any businesses you are connected or affiliated with.
If your previous year’s aggregated turnover (gross income not net profit) was $2 million or less, you are a small business for the current year. If one of your last two year’s aggregated turnover was less than $2 million, you can estimate that your current year will be $2 million or less. These allow you, as a small business, to access the various PAYG Instalments, GST, CGT, FBT and income tax concessions.
