Calculating Aggregated Turnover

Whether a business is entitled to certain tax concessions – e.g. the simplified depreciation rules and the small business CGT concessions – depends on the business’s “aggregated turnover”.

Aggregated turnover is generally the business’s annual turnover plus the annual turnovers of affiliates of the entity and entities connected with the entity.

Annual turnover is all ordinary income the business derived in the ordinary course of carrying on a business for the income year.

The ATO has confirmed that JobKeeper payments are not included in annual turnover. This is because they are not derived in the ordinary course of carrying on a business, even though they are ordinary income (and therefore should be included in your assessable income). Other amounts that are not included in annual turnover are:

  • GST charged on a transaction;
  • amounts borrowed for the business;
  • proceeds from selling business capital assets;
  • insurance proceeds for the loss or destruction of a business asset; and
  • amounts received from farm management deposit repayments.