The Government will introduce an income test for the entrepreneurs’ tax offset (ETO), with effect from 1 July 2008. The measure reduces the existing concession and tax expenditure through better targeting. The ETO provides a 25% tax offset for small businesses with annual turnover of less than $75,000, which begins to phase out for turnover greater than $50,000. The income test will focus the benefit of the ETO towards genuine small businesses, by restricting eligibility for singles from $75,000 and families from $120,000 adjusted taxable income per year.
For a copy of the Treasurer's press release, No 2008/50, 13 May 2008, go here