Document ID: chunk:federal_register_of_legislation:C2011C00698:clause:4_8
Version: federal_register_of_legislation:C2011C00698
Segment Type: clause
Provision Reference: sch 4 cl 8
Character Range: 51038–52880

8  After section 61‑520
Insert:

61‑523  25% entrepreneurs' tax offset—reduction for non‑small business income

  Reduce the amount of your *tax offset worked out under subsection 61‑505(2), 61‑510(2) or 61‑520(2) by the amount worked out using the following formula (but not below nil), if:
 (a) you are an individual; and
 (b) the amount worked out using the formula is greater than nil:
where:

non‑ETO small business income for the income year is worked out by:
 (a) adding up the following:
 (i) your taxable income for the year;
 (ii) your *reportable fringe benefits total for the year;
 (iii) your *reportable superannuation contributions (if any) for the year;
 (iv) your *total net investment loss for the year; and
 (b) subtracting:
 (i) in a case covered by subsection 61‑505(2)—your *net small business income for the year; or
 (ii) in a case covered by subsection 61‑510(2) or 61‑520(2)—your net small business income share for the year (within the meaning of paragraph 61‑510(1)(e) or 61‑520(1)(e), whichever is applicable); and
 (c) adding the following in relation to each individual (if any) who, on the last day of the year, is your *spouse:
 (i) your spouse's taxable income for the year;
 (ii) your spouse's reportable fringe benefits total for the year;
 (iii) your spouse's reportable superannuation contributions (if any) for the year;
 (iv) your spouse's total net investment loss for the year.

Note: ETO is short for 25% entrepreneurs' tax offset.

threshold amount means:
 (a) $120,000 if:
 (i) on any day during the income year, you have a dependant (within the meaning of the definition of dependant in subsection 159P(4) of the Income Tax Assessment Act 1936, disregarding paragraph (a) (spouse) of that definition); or
 (ii) on the last day of the income year, you have a *spouse; or
 (b) otherwise—$70,000.