This Division explains the meaning of the terms small business entity , annual turnover , aggregated turnover and related concepts (Subdivision   328 - C).

If you are a small business entity, this Division allows you to change the way the income tax law applies to you in these ways:

  (a)   you can choose to put your depreciating assets into a general pool and treat the pool as a single asset (Subdivision   328 - D);

  (b)   you can choose not to account for annual changes in trading stock value that are not more than $5,000 (Subdivision   328 - E).

In usual circumstances, these changes will simplify the working out of your taxable income, and so reduce your compliance costs.

You may be entitled to a tax offset for any small business income included in your assessable income, if you are an individual (Subdivision   328 - F).