What is the annual turnover of a business for a financial year?
(1) The annual turnover of a business 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.
Note: The annual turnover for a financial year of a business carried on by an entity that does not carry on another business will often be similar to the total of the instalment income the entity notifies to the Commissioner of Taxation for the 4 quarters in the year (or for the year, if the entity pays tax in annual instalments).
(2) However, if a business has been carried on for only part of a financial year, its annual turnover for the financial year is the amount worked out using the formula: