Document ID: chunk:federal_register_of_legislation:C2015A00114:clause:1_1:p1
Version: federal_register_of_legislation:C2015A00114
Segment Type: clause
Provision Reference: sch 1 cl 1 (pt 1/2)
Character Range: 2140–4795

1  At the end of Division 328
Add:

Subdivision 328‑F—Small business income tax offset

Guide to Subdivision 328‑F

328‑350  What this Subdivision is about

      You may be entitled to a tax offset if you are an individual:
             (a) who is a small business entity; or
             (b) whose assessable income includes a share of the net income of an unincorporated small business entity.

Table of sections

Operative provisions
328‑355 Entitlement to the small business income tax offset
328‑360 Amount of your tax offset
328‑365 Net small business income
328‑370 Relevant attributable deductions
328‑375 Modification if you are under 18 years old

Operative provisions

328‑355  Entitlement to the small business income tax offset
  You are entitled to a *tax offset for an income year if you are an individual:
 (a) who is a *small business entity for the income year; or
 (b) whose assessable income for the income year includes a share of the *net income, for the income year, of a small business entity that is not a *corporate tax entity.
Note: This section does not apply to an individual in his or her capacity as the trustee of a trust (see subsection 960‑100(4)).

328‑360  Amount of your tax offset
 (1) The amount of your *tax offset is equal to 5% of the following:
where:
your total net small business income for the income year means so much of the sum of the following as does not exceed your taxable income for the income year:
 (a) your *net small business income for the income year, if you are a *small business entity for the income year;
 (b) your share of a small business entity's net small business income for the income year that is included in your assessable income for the income year, less your deductions to the extent that they are attributable to that share and covered by section 328‑370.
For the purposes of paragraph (b), disregard small business entities that are *corporate tax entities.
Note: If you are under 18 years old, your total net small business income will probably be worked out under section 328‑375.
 (2) However, the amount of your *tax offset is $1,000 if the amount worked out under subsection (1) exceeds $1,000.
Note: Your tax offset is capped at $1,000 regardless of the number of small business entities that cause you to be entitled to the tax offset for the income year.

328‑365  Net small business income
 (1) A *small business entity's net small business income for an income year is the result of:
 (a) working out the entity's assessable income for the income year to the extent that it relates to the entity carrying on a *business, but disregarding:
 (i) any *net capital gain;