The Australian Taxation Office (ATO) has published Taxation Ruling (TR) 2019/1. The ruling considers when a company carries on a business within the meaning of small business entity for the purpose of the reduced corporate tax rate provided in section 23 of the Income Tax Rates Act (ITRA) 1986, as it applied in the 2015-16 and 2016-17 income years.

The ruling looks at several different aspects…