Item 15 - Net income or loss from business

See Item 15 - Net income or loss from business on the ATO website for more information.

The amounts at item 15: labels:

B: Primary production income/loss and C: Non-primary production income are entered at item P8.
D, W, F: Use a generic schedule to complete.
F: Use business income statements and payment summaries (bip).
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.

Use the Primary production income worksheet (Schedule C) to assist with completing this label. See Schedule C (primary production worksheet).

Label C - Net non-primary production income/loss

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.

Use the Non-primary production income worksheet (Schedule B) to assist with completing this label. See Schedule B (business income worksheet).

Small Business - Eligibility

Is the taxpayer a Small Business Entity?

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.

COVID - 19 changes

COVID-19 Support for business

For COVID-19, measures introduced in March 2020 provide businesses with an aggregated turnover of less than $500 million for 2019-2020 to or deduct the cost of depreciating assets at an accelerated rate.

Complete the 2 questions to be eligible for accelerated depreciation rate for new assets first used and installed for a taxable purpose on or after 12 March 2020.

Business income

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).

Any offset calculated will be included in the taxpayer’s F4 Estimate. See Small business income - for small business tax offset (sbi).

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.

To enter data in	complete
Label D - Tax withheld - voluntary agreement	a generic schedule.
Label W - Tax withheld where Australian Business Number not quoted	a generic schedule.
Label E - Tax withheld - foreign resident withholding (excluding capital gains)	business income statements and payment summaries (bip)
Label F - Tax withheld - labour hire or other specified payments	a generic schedule.