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lhains12(Dynamo)Dynamo
14 Sept 2023

Hi, I'm just after some clarification regarding the choice in the 'company status' part (3) of a company tax return, F1 small business entity. The company is operating a business and its turnover is below $10mil but the aggregated turnover is above $10mill and below $50mill. For this question, is the company a small business? The instructions don't make in clear how to respond.


For an entity that isn't operating a business for base rate entity purposes as it dervies more than 20% of passive income, is it still a small business based on it's aggregated turnover?

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TeddyATO(Community Support)Community Support
18 Sept 2023

Hello @Ihains12,


If you look at the company tax return instructions under the section status of company it clearly lists the eligibility of what you should label your company as. For instance to be classed as the small business entity its eligibility is based off aggregated turnover being less than $10 million. It is more likely that you are a base rate entity. Also the eligibility cap of base rate entity passive income is no more than 80% not 20%.

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Most helpful reply

TeddyATO(Community Support)Community Support
18 Sept 2023

Hello @Ihains12,


If you look at the company tax return instructions under the section status of company it clearly lists the eligibility of what you should label your company as. For instance to be classed as the small business entity its eligibility is based off aggregated turnover being less than $10 million. It is more likely that you are a base rate entity. Also the eligibility cap of base rate entity passive income is no more than 80% not 20%.

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Company tax return information 'Small business' question | ATO Community