Media release

Entrepreneurs' Tax Offset

19 April 2010

With the end of the 2009/2010 financial year fast approaching, the Small Business Development Corporation (SBDC) is encouraging small business operators to check whether they qualify for the 25 per cent tax rebate, through the Australian Taxation Office’s Entrepreneurs' Tax Offset (ETO).

SBDC Acting Managing Director, Jacky Finlayson, says the ETO is not well known so many small businesses who qualify for it may be missing out.

"It's not often an opportunity comes along to make genuine savings on business tax, so this initiative will be welcomed by many small and micro business owners," Ms Finlayson.

Business owners with a turnover of less than $75,000 should ensure their accountants apply for the 25 per cent ETO on their behalf.*

According to Ms Finlayson, a micro business or a business just starting up, would find the savings quite substantial.

"In general, businesses should ensure they are applying for all subsidies or tax breaks to which they are entitled," Ms Finlayson said.

"In this instance, a business with a taxable income of $50,000 could qualify for a tax saving of up to $2,250, which is quite significant.

According to the Australian Taxation Office, where eligible businesses missed claiming the Entrepreneurs’ Tax Offset last financial year, it is possible to have that return amended.

"We encourage small business operators to contact their accountants, the SBDC or their nearest Small Business Centre to check whether their business is eligible for the ETO," Ms Finlayson said.

*From 2009-10 the Government is proposing to apply an additional income test to the eligibility criteria for the ETO but these amendments are still before Parliament. Business owners can check the ATO’s website for updates on the progress of these amendments.

Media contact: Di Graham (08) 9220 0218 or 0409 089 159.

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