Small Business Income Tax Offset
Tax offset for unincorporated small businesses
The Small Business Income Tax Offset cuts tax on business income by up to $1,000 a year.
Who can apply
Sole traders and people with a share of small business income from a partnership or trust that meets the turnover test. The ATO calculates it from your tax return.
- Program
- Small Business Income Tax Offset
- Provider
- Australian Government
- Level
- Australian Government
- Type
- Tax concession
- Amount
- Tax offsets of up to $1000 per year.
- Closing date
- Closing date not stated
- Region
- Australia-wide
- Industries
- Any industry
- Last checked
- 22 Oct 2026
Read the official page Apply (official portal)
Not sure this fits your business?
This one is claimed through your tax return, so there's no application for us to write. We'll still flag it on your shortlist, alongside the grants we can apply for on your behalf.
Eligibility quick-check
- Business structure: for individuals and unincorporated businesses (sole traders, partners). Companies can't use it.
- Turnover: < $5m
- Location: open Australia-wide, including Victoria.
A quick guide from our reading of the official criteria, not a decision. The funder's guidelines are what count.
Get my free shortlistHow to apply for Small Business Income Tax Offset
- Check the conditions on the official page (turnover, timing and what qualifies).
- Keep the records the ATO or the provider asks for (invoices, dates, how the asset or cost is used).
- Claim it in your tax return or the provider's form. Your tax agent normally does this step.
- Ask your accountant how it interacts with other concessions before you rely on it.
Small Business Income Tax Offset: common questions
Who can apply for Small Business Income Tax Offset?
Sole traders and people with a share of small business income from a partnership or trust that meets the turnover test. The ATO calculates it from your tax return.
How much is Small Business Income Tax Offset worth?
Tax offsets of up to $1000 per year.
When does Small Business Income Tax Offset close?
Closing date not stated. Check the official page for the current round.
Can sole traders apply for Small Business Income Tax Offset?
Yes. Small Business Income Tax Offset is for individuals and unincorporated businesses such as sole traders, not companies.
Is there an application form?
Usually not. Tax concessions are generally claimed in your tax return or through the provider's own form, so your tax agent is the right person to help.