# Increased small business income tax offset for 2016-17 income year



## Jack Malarkey (Jan 11, 2016)

The Australian Taxation Office has released the following information about an increase in the small business income tax offset from the 2016-17 income year (https://www.ato.gov.au/Business/Sma...usiness/#Smallbusinessincometaxoffsetincrease):

*Increased small business income tax offset*

You can claim the small business income tax offset if you are a small business sole trader, or have a share of net small business income from a partnership or trust.

From the 2016-17 income year:


the small business income tax offset increased to 8%, with a limit of $1,000 each year


the offset applies to small businesses with turnover less than $5 million.
We work out your offset based on amounts shown in your income tax return at:

If you use myTax -'Small business income tax offset' (in the Offsets section).

If you're a tax professional - the following labels:


item 5A Net small business income


item 13D Partnership share of net small business income less deductions attributable to that share


item 13E Trust share of net small business income less deductions attributable to that share.
The tax offset increases to 10% in 2024-25, to 13% in 2025-26, and to 16% from the 2026-27 income year.


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