5Meaning of SME entity

5 Meaning of SME entity

(1) For the purposes of the definition of SME entity in section 4 of the Act, an entity is an SME entity at a time in a financial year (the current year) if: (a) the entity carries on a business in the current year, or is a non‑profit body during the current year; and (b) one or more of the following applies: (i) the entity’s annual turnover for the current year is likely to be less than $250 million; (ii) the entity carried on a business in one of the 2 financial years immediately before the current year, and its annual turnover for that year was less than $250 million; (iii) the entity was a non-profit body during one of the 2 financial years immediately before the current year, and its annual turnover in that year was less than $250 million. Meaning of annual turnover (2) The annual turnover of an entity for a financial year is the total of the following that is earned in the year in the course of the business: (a) the proceeds of sales of goods and/or services; (b) commission income; (c) repair and service income; (d) rent, leasing and hiring income; (e) government bounties and subsidies; (f) interest, royalties and dividends; (g) other operating income. (3) In applying subsection (2) to a non‑profit body, treat the operations or activities carried out by that body as the business of the body.