Understanding aggregated turnover and how it impacts tax concessions

27 October 2021

Aggregated turnover is an entity’s annual turnover for the income year as well as the annual turnover of entities connected with or an affiliate of that entity. Your entity’s aggregated turnover may impact the various tax concessions your business can qualify for.

An entity is connected with another entity if either entity controls the other entity or both entities are controlled by the same third entity.

An individual or a company is an affiliate of an entity if the individual or company acts or could reasonably be expected to act in accordance with the entity’s directions or wishes or in concert with the entity in relation to the affairs of the business of the individual or company.

To determine the concessions your business can potentially qualify for, it is necessary to determine what your aggregated turnover is.

Tax concession

Aggregated turnover must be less than

Small business CGT concessions including CGT 15-year asset exemption, CGT 50% active asset reduction, CGT retirement exemption and CGT replacement asset rollover

$2 million

Small business restructure rollover, simpler BAS, accounting for GST on a cash basis, annual apportionment of GST input tax credits, and paying GST by instalments

$10 million

FBT car parking exemption and work-related devices exemption

$50 million

Variety of small business concessions such as deductions for professional expenses for start-ups, immediate deductions for prepaid expenses, simplified trading stock rules, PAYG instalments concession, a two-year amendment period and the excise concession

$50 million

Full expensing of depreciating assets (FEDA) and loss carry back tax offset

$5 billion

Working out your aggregated turnover and determining whether you satisfy the different conditions of the different concessions can be a complicated task.

Please speak to your Findex adviser or get in touch with the Tax Advisory team if you want to know more about these concessions and how they can help your business.