TAX LAWS AMENDMENT (2010 MEASURES NO. 1) ACT 2010 (NO. 56, 2010) - SCHEDULE 4 25% entrepreneurs' tax offset
TAX LAWS AMENDMENT (2010 MEASURES NO. 1) ACT 2010 (NO. 56, 2010) - SCHEDULE 4
25% entrepreneurs' tax offset
Income Tax Assessment Act 1997
1 Section 61‑500
Omit:
Your entitlement to the offset varies depending on what kind of entity you are. The amount of your offset varies depending on whether your aggregated turnover is $50,000 or less or is more than $50,000.
Substitute:
Your entitlement to the offset varies depending on what kind of entity you are. The amount of your offset varies depending on:
(a) whether your aggregated turnover is $50,000 or less or is more than $50,000; and
(b) if you are an individual--whether you (and your spouse, if you have a spouse) have significant income from sources other than your small business.
2 Subsection 61‑505(2) (at the end of step 4 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
3 Subsection 61‑505(2) (at the end of step 5 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
4 Subsection 61‑510(2) (at the end of step 4 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
5 Subsection 61‑510(2) (at the end of step 5 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
6 Subsection 61‑520(2) (at the end of step 4 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
7 Subsection 61‑520(2) (at the end of step 5 of the method statement)
Add:
Note: If you are an individual, section 61‑523 may reduce the amount of the tax offset.
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.
9 Application provision
The amendments made by this Schedule apply in relation to assessments for income years that commence on or after 1 July 2009.