Applying Australian small business eligibility, turnover and concession rules for 2026–27.

Professional reference and assessment | 2026–27

Course overview

The material provides a structured approach to the Australian small business entity framework and the principal concession thresholds applying in the 2026–27 income year. It develops the evidence and calculations required to determine annual eligibility, annual and aggregated turnover, connected entities, affiliates and the application of selected tax concessions. Specialist depreciation, capital gains tax, goods and services tax, pay as you go and fringe benefits tax rules are addressed only to the extent required to apply the small business eligibility gateways.

Scope and reliance

Where a measure is described as proposed, its enacted status should be confirmed before a transaction is implemented or a return is lodged.

The material identifies small business eligibility gateways and concession interfaces. Detailed calculations under specialist tax regimes require separate analysis.

Course objectives

Explain the small business entity framework and distinguish the thresholds applying to separate concessions and tax classifications.
Determine annual and aggregated turnover using the correct annual eligibility method, group composition and statutory exclusions.
Evaluate connected entities, affiliates and changes in control or relationships during an income year.
Apply the principal small business concession interfaces for depreciation, prepayments, start-up costs, goods and services tax, trading stock, pay as you go, fringe benefits tax, income tax and capital gains tax.
Prepare practitioner workpapers that separate enacted law from proposed measures and support elections, lodgements and year-end review.

Learning Outcomes

You should be able to identify whether an entity carries on a business and satisfies the threshold for the relevant small business measure.
You should be able to calculate annual and aggregated turnover and document the entities, periods and intra-group amounts included or excluded.
You should be able to analyse company, partnership and trust control indicators and distinguish connected entities from affiliates.
You should be able to select and apply the relevant concession gateway without assuming that one small business classification establishes another.
You should be able to reconcile concession decisions to returns, activity statements, asset and inventory records, and monitor pending legislation before lodgement.

CPD/CPE compliance mapping

The mapping below identifies the professional capability areas supported by the learning material. Recognition of hours and classification remains subject to each professional body’s current rules, the relevance of the activity to the member’s role and the retention of verifiable completion evidence. CPD/CPE alignment

Learning area	CPA Australia	CA ANZ	IPA	Tax Practitioners Board
SBE eligibility and threshold analysis	Taxation technical capability and role-relevant CPD.	Taxation competence and verifiable role-relevant CPD.	Technical and product knowledge.	Relevant CPE for tax agent services and maintaining current knowledge.
Turnover, grouping and evidence	Professional judgement, risk and tax compliance capability.	Technical competence, evidence and professional judgement.	Technical knowledge and management or professional skills.	Relevant CPE supporting competent tax and BAS services.
Concession and tax interface decisions	Tax compliance and advisory capability.	Taxation technical development relevant to responsibilities.	Technical and product knowledge across tax and advisory work.	Relevant CPE where the material relates to services provided.
GST, PAYG and FBT interfaces	Technical tax and business reporting capability.	Role-relevant technical development.	Technical and regulatory knowledge.	Relevant to tax agents and, where within scope, BAS agents.
Legislative monitoring and workpapers	Professional competence, governance and record keeping.	Verifiable CPD supporting ongoing professional competence.	Management, professional skills and ethical standards context.	Supports the obligation to maintain relevant knowledge and CPE records.