Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:1_5:p3
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 3/4)
Character Range: 17899–20480

less than $75,000; and
 (d) the trust has *net STS income for the year; and
 (e) you are liable to be assessed under section 98, 99 or 99A of the Income Tax Assessment Act 1936 on a share (your net STS income share) of that net STS income.

Amount

 (2) The amount of your *tax offset is worked out in this way:

      Method statement
           Step 1. Work out the *net income of the trust for the income year.
           Step 2. Work out 25% of the amount of income tax you are liable to pay for the year on that *net income (apart from any *tax offsets).
           Step 3. Work out the percentage (the STS percentage) using the formula:

            If that percentage is more than 100%, the STS percentage is 100%.
           Step 4. If the trust's *STS group turnover for the year is $50,000 or less, multiply the amount at step 2 by the STS percentage: the result is the amount of your *tax offset.
           Step 5. If the trust's *STS group turnover for the year is more than $50,000, work out the fraction (the STS phase‑out fraction) using the formula:

            The amount of your *tax offset is worked out using the formula:

61‑520  25% entrepreneurs' tax offset: beneficiary of a trust

Entitlement

 (1) You are entitled to a *tax offset for an income year if:
 (a) you are a beneficiary of a trust during the year; and
 (b) the trust is an *STS taxpayer for the year; and
 (c) the trust's *STS group turnover for the year is less than $75,000; and
 (d) the trust has *net STS income for the year; and
 (e) your assessable income for the year includes a share (your net STS income share) of that net STS income.

Amount

 (2) The amount of your *tax offset is worked out in this way:

      Method statement
           Step 1. Work out your taxable income for the income year.
           Step 2. Work out 25% of your basic income tax liability for the year (as worked out in step 2 of the method statement in subsection 4‑10(3)).
           Step 3. Work out the percentage (the STS percentage) using the formula:

            If that percentage is more than 100%, the STS percentage is 100%.
           Step 4. If the trust's *STS group turnover for the year is $50,000 or less, multiply the amount at step 2 by the STS percentage: the result is the amount of your *tax offset.
           Step 5. If the trust's *STS group turnover for the year is more than $50,000, work out the fraction (the STS phase‑out fraction) using the formula:

            The amount of your *tax offset is worked out using the formula:

61‑525  Meaning of net STS income and