sch.23-sec.5Meaning of small business

### sch.23-sec.5 Meaning of small business A small business is a business— for which an entity holds an Australian Business Number; and in which are employed fewer than— 20 full-time employees; or if the business has employees other than full-time employees—20 equivalent full-time employees. However, a small business does not include— a body corporate under the Body Corporate and Community Management Act 1997 ; or a business mentioned in section 3 , definition primary production enterprise , paragraph (a) . Also, a business is not a small business if— the business is operated by a public company; or the business is a charitable business that, under the disaster recovery funding arrangements, is eligible to receive assistance for the clean-up and reinstatement of the business in relation to direct damage caused by an eligible disaster. Further, a business is not a small business if— the business is carried on by a sole trader; and the business has no employees, other than the sole trader; and the sole trader does not derive the majority of the sole trader’s income from the business. Despite subsection (4) (c) , a business is a small business if the sole trader— immediately before an eligible disaster, derived the majority of the sole trader’s income from the business; and in the opinion of the authority, would have derived the majority of the sole trader’s income from the small business again, but for the eligible disaster. For subsection (1) (b) , the number of equivalent full-time employees of a business is worked out using the formula— where— E means the number of equivalent full-time employees of the business. F means the number of full-time employees of the business. P means the total number of hours worked each week by employees other than full-time employees. In this section— charitable business means a business that does not operate to make a profit. full-time employee , of a business, means an individual who ordinarily works for at least 35 hours each week for the business. public company means a public company within the meaning of the Corporations Act . sch 23 s 5 ins 2013 SL No. 19 s 10 amd 2015 SL No. 74 s 5 ; 2016 SL No. 133 s 6 ; 2018 SL No. 172 s 34 ; 2025 SL No. 120 s 12 (sch.23-sec.5-ssec.1) A small business is a business— for which an entity holds an Australian Business Number; and in which are employed fewer than— 20 full-time employees; or if the business has employees other than full-time employees—20 equivalent full-time employees. (sch.23-sec.5-ssec.2) However, a small business does not include— a body corporate under the Body Corporate and Community Management Act 1997 ; or a business mentioned in section 3 , definition primary production enterprise , paragraph (a) . (sch.23-sec.5-ssec.3) Also, a business is not a small business if— the business is operated by a public company; or the business is a charitable business that, under the disaster recovery funding arrangements, is eligible to receive assistance for the clean-up and reinstatement of the business in relation to direct damage caused by an eligible disaster. (sch.23-sec.5-ssec.4) Further, a business is not a small business if— the business is carried on by a sole trader; and the business has no employees, other than the sole trader; and the sole trader does not derive the majority of the sole trader’s income from the business. (sch.23-sec.5-ssec.5) Despite subsection (4) (c) , a business is a small business if the sole trader— immediately before an eligible disaster, derived the majority of the sole trader’s income from the business; and in the opinion of the authority, would have derived the majority of the sole trader’s income from the small business again, but for the eligible disaster. (sch.23-sec.5-ssec.6) For subsection (1) (b) , the number of equivalent full-time employees of a business is worked out using the formula— where— E means the number of equivalent full-time employees of the business. F means the number of full-time employees of the business. P means the total number of hours worked each week by employees other than full-time employees. (sch.23-sec.5-ssec.7) In this section— charitable business means a business that does not operate to make a profit. full-time employee , of a business, means an individual who ordinarily works for at least 35 hours each week for the business. public company means a public company within the meaning of the Corporations Act . - (a) for which an entity holds an Australian Business Number; and - (b) in which are employed fewer than— (i) 20 full-time employees; or (ii) if the business has employees other than full-time employees—20 equivalent full-time employees. - (i) 20 full-time employees; or - (ii) if the business has employees other than full-time employees—20 equivalent full-time employees. - (i) 20 full-time employees; or - (ii) if the business has employees other than full-time employees—20 equivalent full-time employees. - (a) a body corporate under the Body Corporate and Community Management Act 1997 ; or - (b) a business mentioned in section 3 , definition primary production enterprise , paragraph (a) . - (a) the business is operated by a public company; or - (b) the business is a charitable business that, under the disaster recovery funding arrangements, is eligible to receive assistance for the clean-up and reinstatement of the business in relation to direct damage caused by an eligible disaster. - (a) the business is carried on by a sole trader; and - (b) the business has no employees, other than the sole trader; and - (c) the sole trader does not derive the majority of the sole trader’s income from the business. - (a) immediately before an eligible disaster, derived the majority of the sole trader’s income from the business; and - (b) in the opinion of the authority, would have derived the majority of the sole trader’s income from the small business again, but for the eligible disaster.