Document ID: chunk:federal_register_of_legislation:C2010C00584:clause:1_5:p2
Version: federal_register_of_legislation:C2010C00584
Segment Type: clause
Provision Reference: sch 1 cl 5 (pt 2/4)
Character Range: 15541–18096

formula:

Example: A company runs a local sports business. The company is an STS taxpayer for the year. The company's STS group turnover for the year is $50,000, the company's net STS income for the year is $40,000 and the company's taxable income for the year is $80,000.

 The company is entitled to a tax offset.

 The amount of the offset is worked out in this way:

 The step 1 amount is $80,000.

 The step 2 amount is $6,000: 25% of the company's basic income tax liability of $24,000 ($80,000 multiplied by the 30% company tax rate).

 The step 3 STS percentage is:

 The amount of the company's tax offset (step 4) is:

61‑510  25% entrepreneurs' tax offset: partner in a partnership

Entitlement

 (1) You are entitled to a *tax offset for an income year if:
 (a) you are a partner in a partnership during the year; and
 (b) the partnership is an *STS taxpayer for the year; and
 (c) the partnership's *STS group turnover for the year is less than $75,000; and
 (d) the partnership 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 partnership'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 partnership'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:

61‑515  25% entrepreneurs' tax offset: trustee of a trust

Entitlement

 (1) You are entitled to a *tax offset for an income year if:
 (a) you are a trustee 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) you are liable to be assessed under section 98, 99 or 99A of the Income Tax Assessment Act 1936 on a share (your net