Document ID: chunk:federal_register_of_legislation:F2021C00343:reg:5:p1
Version: federal_register_of_legislation:F2021C00343
Segment Type: reg
Provision Reference: reg 5 (pt 1/2)
Character Range: 3283–6084

5  Meaning of SME entity
 (1) For the purposes of the definition of SME entity in section 4 of the Act, an entity is an SME entity at a time in a financial year (the current year) if:
 (a) the entity carries on a business in the current year, or is a non‑profit body during the current year; and
 (b) one or more of the following applies:
 (i) the entity's annual turnover for the current year is likely to be less than $250 million;
 (ii) the entity carried on a business in one of the 2 financial years immediately before the current year, and its annual turnover for that year was less than $250 million;
 (iii) the entity was a non-profit body during one of the 2 financial years immediately before the current year, and its annual turnover in that year was less than $250 million.

Meaning of annual turnover
 (2) The annual turnover of an entity for a financial year is the total of the following that is earned in the year in the course of the business:
 (a) the proceeds of sales of goods and/or services;
 (b) commission income;
 (c) repair and service income;
 (d) rent, leasing and hiring income;
 (e) government bounties and subsidies;
 (f) interest, royalties and dividends;
 (g) other operating income.
 (3) In applying subsection (2) to a non‑profit body, treat the operations or activities carried out by that body as the business of the body.

Endnotes

Endnote 1—About the endnotes
The endnotes provide information about this compilation and the compiled law.

The following endnotes are included in every compilation:

Endnote 1—About the endnotes
Endnote 2—Abbreviation key
Endnote 3—Legislation history
Endnote 4—Amendment history

Abbreviation key—Endnote 2
The abbreviation key sets out abbreviations that may be used in the endnotes.

Legislation history and amendment history—Endnotes 3 and 4
Amending laws are annotated in the legislation history and amendment history.

The legislation history in endnote 3 provides information about each law that has amended (or will amend) the compiled law. The information includes commencement details for amending laws and details of any application, saving or transitional provisions that are not included in this compilation.

The amendment history in endnote 4 provides information about amendments at the provision (generally section or equivalent) level. It also includes information about any provision of the compiled law that has been repealed in accordance with a provision of the law.

Misdescribed amendments
A misdescribed amendment is an amendment that does not accurately describe the amendment to be made. If, despite the misdescription, the amendment can be given effect as intended, the amendment is incorporated into the compiled law and the abbreviation "(md)" added to the details of the amendment included in the