# Don’t forget to claim the small business income tax offset



## Jack Malarkey (Jan 11, 2016)

1. Don't forget to claim the small business income tax offset when you lodge your income tax return.

2. The small business income tax offset provides a discount of up to $1,000 on the income tax you pay on your net small business income.

3. The discount rate for 2019-20 tax returns is 8% but is 13% for 2020-21 tax returns and 16% for 2021-22 and later tax returns. (The maximum discount of $1,000 per income year doesn't change.)

4. To claim the small business income tax offset, you include your net small business income at the appropriate label (in addition to returning your net business income at the other label applicable for that) and the Tax Office calculates the offset for you. See:

*Claiming the small business income tax offset*

5. The offset is included in your assessment notice.

6. If you didn't claim it, you can always request it in writing once your notice of assessment issues and the Tax Office will amend your assessment to allow it. See:

*How to request an income tax amendment*

7. You can also go back for up to a couple of years to obtain amended assessments for earlier income years.

8. The Australian Taxation Office has confirmed that those who receive jobkeeper payments as sole traders or other business participants should include these payments in the income of the business when calculating net business income (and thence net small business income).

9. This means that jobkeeper payments for business participants can benefit from the small business income tax offset so you pay less income tax on those payments and other small business income.


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