If you’re an eligible business, you can access a range of concessions to help reduce the amount of tax you pay. As each concession has different eligibility requirements, including turnover, check your eligibility each year before applying the concession.
Small business concessions
If you’re an eligible small business you can access a range of concessions. This applies to sole traders, partnerships, companies and trusts. There are varying eligibility requirements for different concessions. Check your eligibility each year before you apply a concession.
Small business concessions based on aggregated turnover
Eligible small businesses can access a range of concessions based on aggregated turnover. This applies to sole traders, partnerships, companies and trusts.
Apart from aggregated turnover, most small business concessions have extra eligibility conditions.
If you have an aggregated turnover less than:
- $2 million, you can access the small business CGT concessions
- $5 million, you can access the small business income tax offset
- $10 million, you can access the small business restructure roll-over.
Primary producer concessions
If you’re a primary producer, special tax concessions may affect which amounts you include in your assessable income each year. These concessions also affect when you must pay your income tax, as you may be able to make 2 pay as you go (PAYG) instalments each year, instead of 4.
Primary producers also have access to primary production averaging, which may allow you to pay a lower tax rate in years where you earn above-average income. To be eligible for special concessions for primary producers you must meet the ATO’s definition of carrying on a business of primary production, which considers the size or scale of your business and its profitability.
Primary producers operating as an individual or in partnership can also benefit from exceptions to the non-commercial losses rules. These rules would normally restrict you from offsetting your losses from a non-commercial business activity against your other assessable income. Those restrictions don’t apply if your income from other sources (excluding net capital gains) is less than $40,000.
Special professionals, sportspersons and entertainers’ concessions
Some special professionals, sportspersons and entertainers qualify for income averaging. This may allow you to pay a lower tax rate in years where you earn above-average income.
You may qualify for income averaging if you are:
- an artist
- an author
- a composer
- an inventor
- a performing artist
- a production associate
- a sportsperson.
You may also be able to make 2 PAYG instalments each year instead of 4. We will send you a letter if you are eligible for this option.
Source: ato.gov.au May 2025
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/businesses-and-organisations/income-deductions-and-concessions/incentives-and-concessions/concessions
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