eCite Digital Repository
The tax offset for entrepreneurs: a critical review of the 25 per cent tax offset for small business
Citation
McLaren, J, The tax offset for entrepreneurs: a critical review of the 25 per cent tax offset for small business, Journal of Australasian Tax Teachers Association, 2, (1) pp. 107-120. ISSN 1832-911X (2006) [Refereed Article]
![]() | PDF Restricted - Request a copy 105Kb |
Copyright Statement
Copyright 2006 the author
Official URL: https://www.business.unsw.edu.au/About-Site/School...
Abstract
From 1 July 2005, small business taxpayers using the Simplified Tax System and with a turnover
of $50, 000 or less are allowed a tax offset of 25 per cent on their tax payable. If turnover exceeds the tax offset phases out at I per cent until the turnover reaches $75,000. This tax
concession was part of the government election statement made on 26 September 2004 in which the government stated that it wanted to assist and encourage small business entrepreneurs, particularly those set up from home. The steps involved in calculating the amount of tax offset
that can be claimed are complicated where the business is structured as a trust or partnership
and also where the taxpayer earns other income not just from the business. The offset also
requires the small business taxpayer to be in a position to actually pay income tax before the tax
offset provides any advantage, so that non-taxpaying small businesses receive no assistance. This
paper critically reviews the 25 per cent tax offset and suggests alternative ways in which
entrepreneurs could have been assisted by the tax system, for example, a reduced rate of income.
Item Details
Item Type: | Refereed Article |
---|---|
Keywords: | tax offset, entrepreneurs |
Research Division: | Law and Legal Studies |
Research Group: | Commercial law |
Research Field: | Taxation law |
Objective Division: | Law, Politics and Community Services |
Objective Group: | Community services |
Objective Field: | Ability and disability |
UTAS Author: | McLaren, J (Dr John McLaren) |
ID Code: | 128610 |
Year Published: | 2006 |
Deposited By: | TSBE |
Deposited On: | 2018-10-02 |
Last Modified: | 2018-11-19 |
Downloads: | 0 |
Repository Staff Only: item control page