Small business tax offset 

August 2016

From the 2016 year onwards individuals are entitled to a tax offset if they are classified as a small business entity (SBE) in their own right or they derive income from a partnership or trust that is a SBE. 

From the 2016 year onwards individuals are entitled to a tax offset if they are classified as a small business entity (SBE) in their own right or they derive income from a partnership or trust that is a SBE. 

In very broad terms, the tax offset is equal to 5% of the individual's tax liability for the year which relates to their net small business income. 

The tax offset is capped at $1,000 for the 2016 income year.