Document ID: chunk:federal_register_of_legislation:C2010C00262:clause:1_1:p1
Version: federal_register_of_legislation:C2010C00262
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/5)
Character Range: 2376–5088

1  After Subdivision 328‑B
Insert:

Subdivision 328‑C—What is a small business entity

Guide to Subdivision 328‑C

328‑105  What this Subdivision is about

      This Subdivision explains the meaning of the terms small business entity, annual turnover, aggregated turnover and related concepts.

Table of sections

Operative provisions

328‑110 Meaning of small business entity
328‑115 Meaning of aggregated turnover
328‑120 Meaning of annual turnover
328‑125 Meaning of connected with an entity
328‑130 Meaning of affiliate

Operative provisions

328‑110  Meaning of small business entity

General rule: based on aggregated turnover worked out as at the beginning of the current income year

 (1) You are a small business entity for an income year (the current year) if:
 (a) you carry on a *business in the current year; and
 (b) one or both of the following applies:
 (i) you carried on a business in the income year (the previous year) before the current year and your *aggregated turnover for the previous year was less than $2 million;
 (ii) your aggregated turnover for the current year is likely to be less than $2 million.

Note: Section 328‑110 of the Income Tax (Transitional Provisions) Act 1997 affects the operation of this subsection in relation to the 2007‑08 and 2008‑09 income years.

 (2) You work out your *aggregated turnover for the current year for the purposes of subparagraph (1)(b)(ii):
 (a) as at the first day of the current year; or
 (b) if you start to carry on a *business during the current year—as at the day you start to carry on the business.

Note: Subsection 328‑120(5) provides for how to work out your annual turnover (which is relevant to working out your aggregated turnover) if you do not carry on a business for the whole of an income year.

Exception: aggregated turnover for 2 previous income years was $2 million or more

 (3) However, you are not a small business entity for an income year (the current year) because of subparagraph (1)(b)(ii) if:
 (a) you carried on a *business in each of the 2 income years before the current year; and
 (b) your *aggregated turnover for each of those income years was $2 million or more.

Note: Section 328‑110 of the Income Tax (Transitional Provisions) Act 1997 affects the operation of this subsection in relation to the 2007‑08 and 2008‑09 income years.

Additional rule: based on aggregated turnover worked out as at the end of the current income year

 (4) You are also a small business entity for an income year (the current year) if:
 (a) you carry on a *business in the current year; and
 (b) your *aggregated turnover for the current year, worked out as at the end of that year, is less than $2 million.

Note: