B: Primary production income/loss and C: Non-primary production income are entered at item P8.
D:W:E: and F: Tax withheld amounts are entered in the Payment summary schedule (PS)
A is for sole trader small business entity income which is used to calculate the taxpayer's Small business income tax offset (SBITO).
Label B - Net primary production income/loss
Click label B to move to item P8 to complete the primary production income and expenses. The result of these entries is the net income or loss at item P8: label Y.
Click label C to move to item P8 to complete the Non-primary production income and expenses. The result of these entries is the net income or loss at item P8: label Z.
This question must be answered and eligibility re-affirmed each year to be eligible for the Small business income tax offset (SBITO), and to use the simplified depreciation rules.
Press Enter at this question to open the Small Business Entity worksheet (sbe). The answer to both eligibility questions in the worksheet must be Y.
Press Alt+S at question 2 to open the Small business entity aggregated turnover worksheet (sat). You can also open the sbe worksheet from the depreciation worksheet (d). If you have done that the eligibility question will be Y or N.
Aggregated turnover for small business has been increased from $10 million to $50 million and for the SBITO, $5 million with the rate of offset 8% applied to the small business income capped at $1,000.
Label A - Net small business income
If you are a running a small business and have reviewed your eligibility for the current income year, you could be entitled to the small business income tax offset (SBITO)
Net Income that you've entered at item P8 for primary production or non-primary production defaulted to labels B and C will be pre-filled to the Small business income worksheet (sbb).
If the taxpayer received income from carrying on a business as an artist, composer, inventor, performer, production associate, active sportsperson or writer, the net business income/loss must be included at item 15: label C and the Taxable professional income (eligible income for averaging purposes) must be entered at item 24, label Z. For full details on calculating Professional eligible income, refer to Item 24 - Other Income.
Integration from the Payment Summary schedule
Click the label or press Enter at the D, W, E and F fields to open the Payment summary schedule. Refer to Payment summary schedule (PS).
Income amounts are totalled and filter through to item P8: labels C, A, E and N.
Tax withheld amounts are totalled and filter through to item 15 labels D, W, E and F.
Label D - Tax withheld - voluntary agreement
This amount is the sum of entries from the Payment Summary (PS) where the Income type is B and the payment type is V.
The ATO accepts dollars and cents at label D.
Label W - Tax withheld where Australian Business Number not quoted
This amount is the sum of entries from the Payment Summary (PS) where the Income type is B and the payment type is N.
The ATO only accepts whole dollar amounts at this label. To avoid rejection don't enter cents at label W.
Label E - Tax withheld - foreign resident withholding (excluding capital gains)
This amount is the sum of entries from the Payment Summary (PS) where the Income type is B and the payment type is F.
The ATO only accepts whole dollar amounts at this label. To avoid rejection don't enter cents at label E.
Label F - Tax withheld - labour hire or other specified payments
This amount is the sum of entries from the Payment Summary (PS) where the Income type is B and the payment type is S.
The ATO accepts dollars and cents at label D
CCH References
7-001 Concessions and tools for small business entities
7-200 Concessional corporate tax rate
10-110 Business income
16-015 Expenses necessarily incurred in carrying on a business
18-030 What is income from primary production?
26-100 PAYG withholding: introduction
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