Small business exemption flowchart

Small business exemption flowchart

  1. Who are my affiliates?

    A business is affiliated with your business, if an individual or company,in relation to their business affairs, acts or could reasonably be expected to act:

    • in accordance with your directions or wishes, or
    • in concert with you.

    Trusts, partnerships and super funds cannot be your affiliates.

    For more information on who is an affiliate or for more information on when an entity is connected with you contact your tax advisor or visit: www.ato.gov.au.

  2. How do I know if my small business is connected with another entity?

    An entity is connected with another entity if:

    • either entity controls the other entity, or
    • both entities are controlled by the same third entity.

    For more information on who is an affiliate or for more information on when an entity is connected with you contact your tax advisor or visit: www.ato.gov.au.

  3. What is the meaning of ‘carrying on a business’?

    Carrying on a business refers to the nature of the entity’s activities, particularly whether the entity is intended to make a profit.

  4. How do I calculate my aggregated turnover?

    Aggregated turnover is your Australia wide annual turnover plus the annual turnovers of any business entities that are your affiliates or are connected with you.

Last updated: 30 August 2018