Increase in the unincorporated small business tax discount

Increase in the unincorporated small business tax discount

Turnover Threshold

From 1 July 2016, the unincorporated small business tax discount is extended to individual taxpayers with business income from an unincorporated business that has an aggregated annual turnover of less than $5 million. This is an increase from the previous threshold applying for the 2015-16 year of $2 million.

Tax Discount

The discount will increase to 8% for year ended 30 June 2017 through until 30 June 2024, further increasing to 10% for the year ended 30 June 2025. From 1 July 2025, the discount will gradually increase to 16% by the year 2027 through yearly 3% incremental increases. The offset limit of $1,000 per a year will continue to apply.