From all the tax offset that I have seen, this is one of the most important tax offset that public should know, especially those in small business.

Entrepreneurs’ tax offset provides SME with aggregated turnover of $50,000 or less with a 25% tax offset from your business income tax payables. It then phases out until the aggregated turnover reaches $75,000. Thus, this means that if you have an aggregated turnover of $75,000 or less and your business is providing you with a net taxable profit, you might be eligible for this tax offset.

One thing we must remember tho, this 25% tax offset is only applicable to be used for the tax payable from your business income not from your whole tax payable. So, if you receive income other then business income, those income will be tax normally.

The purpose of this Entrepreneurs’ Tax Offset is to help stimulates Small Business to grow and I have to say that I applaud the government for making this tax offset available for all Small Business.

It is worth to read and understand this tax offset from the ATO. Click here to find out.

Regards,

Christopher Emmanuel

During December 2009, ATO is going to send letters to all tax practitioners who has corporate business clients with annual turnover of $2million to $250million about debit loan with shareholders or shareholders’ associates.

Private company operators in their role as shareholders or associates of shareholders can be affected by Division 7A if they don’t keep their private expenses separate to the company.

For more information relating to Division 7A affecting private company, please relate to the ATO website here.

Regards,

Christopher Emmanuel