Aggregated turnover is your business’s annual turnover plus the annual turnover of every entity connected with you and every affiliate, with dealings between those entities stripped out. It is defined in Subdivision 328-C of the Income Tax Assessment Act 1997, and it is the single number that decides whether you get the small business CGT concessions (under $2 million), small business entity status and simplified depreciation (under $10 million), and the 25% company tax rate (under $50 million).
Most owners only ever look at their own revenue line. That is exactly how this number goes wrong.
Why ‘aggregated’ is doing the heavy lifting
The word matters more than the number. Parliament did not want a $40 million group enjoying small business concessions by splitting itself into 8 companies of $5 million each, so the definition reaches sideways.
You add the annual turnover of any entity connected with you: broadly, one controls the other, or both sit under common control, with control pitched at a 40% or greater interest in most cases. You also add affiliates, meaning individuals or companies that act, or could reasonably be expected to act, in line with your directions or in concert with you in their business affairs. Then you remove transactions between the group members so nothing is double counted.
The sideways reach is what catches people. Your company might turn over $3 million. If the same person controls another company turning over $8 million, both companies have an aggregated turnover of $11 million. Neither is a small business entity, and neither can use simplified depreciation, even though each one looks small on its own.
$2 million: the CGT concessions gate
The small business CGT concessions in Division 152 are the most valuable concessions in the system, capable of reducing the tax on a business sale to nil. The turnover gateway is aggregated turnover under $2 million, with an alternative entry through the $6 million maximum net asset value test. If you are weighing up a sale, how CGT works on property covers the base rules these concessions sit on top of.
One change to have on the radar: under the Tax Reform No. 1 Act 2026, the turnover threshold for the 50% active asset reduction is legislated to rise from $2 million to $10 million from the 2027-28 income year. The other concessions keep their existing gateways.
$10 million: small business entity status
Aggregated turnover under $10 million makes you a small business entity under section 328-110. That status unlocks simplified depreciation, which is where the instant asset write-off and the small business pool live, along with simpler trading stock rules, prepayment deductions and accounting choices for GST. Note the write-off threshold itself is a moving target: the legislated default is $1,000 from 1 July 2026, and the Bill making $20,000 permanent is not yet law.
Small business entity status also feeds into which deductions and concessions you can actually claim, so it is worth confirming the status before you plan around it, not after.
$50 million: the 25% company tax rate
A company with aggregated turnover under $50 million pays 25% instead of 30%, provided no more than 80% of its assessable income is passive. The mechanics, including the franking consequences that surprise people, are in company tax rate: 25 or 30?. A number of other concessions, including several FBT exemptions, were also extended to the under $50 million tier in recent years.
The trap: this is not GST turnover
GST registration runs on a completely different definition. GST turnover under the GST Act looks at your current and projected turnover against the $75,000 registration threshold, and it does not sweep in connected entities and affiliates the way aggregated turnover does. A business can be over one line and under the other at the same time. If registration is the live question, start with should you register for GST rather than this article.
The practical takeaway: whenever a concession, rate or write-off has a turnover test attached, check which definition it uses before you assume you qualify. The 2 words in front of ‘turnover’ change the answer.
Working out your own number
Start with your annual turnover: ordinary income earned in the ordinary course of business for the income year, GST exclusive. Map every entity where you, or someone who controls you, holds 40% or more. Add affiliates, which is a facts and circumstances call about how independently they really act. Strip inter-group sales. The result is the number you test against $2 million, $10 million and $50 million.
Group structures make this genuinely easy to get wrong, and the consequences compound quietly: a wrong small business entity call flows into depreciation, CGT and your company tax rate all at once. Tax Assistant keeps the entity map and the turnover positions in one place, so the aggregation question gets answered once, with workings, instead of re-guessed every time a threshold matters.
Technical summary
Current as at July 2026.
Aggregated turnover: s 328-115 Income Tax Assessment Act 1997 (ITAA 1997): the sum of the annual turnovers (s 328-120) of the taxpayer, entities connected with the taxpayer (s 328-125, control generally at 40% or more), and affiliates (s 328-130), excluding amounts derived from dealings between those entities.
Thresholds: small business CGT concessions, Division 152 ITAA 1997, basic conditions in s 152-10: CGT small business entity with aggregated turnover under $2 million, or maximum net asset value test under $6 million (s 152-15). Under the Treasury Laws Amendment (Tax Reform No. 1) Act 2026 (Act No. 49 of 2026, Royal Assent 26 June 2026), the aggregated turnover threshold for the 50% active asset reduction rises to $10 million from the 2027-28 income year. Small business entity: aggregated turnover under $10 million, s 328-110 ITAA 1997; simplified depreciation in Subdivision 328-D (pool rates 15% first year, 30% thereafter, ss 328-185 and 328-190). Instant asset write-off: legislated default threshold $1,000 from 1 July 2026; the $20,000 permanent threshold in the Treasury Laws Amendment (Tax Reform No. 2) Bill 2026 (Schedule 2) is not yet law as at July 2026. Base rate entity: aggregated turnover under $50 million and base rate entity passive income at 80% or less of assessable income, taxed at 25%, ss 23, 23AA and 23AB Income Tax Rates Act 1986; guidance in LCR 2019/5.
Distinguish GST turnover: Division 188 of the A New Tax System (Goods and Services Tax) Act 1999 (ss 188-15 current GST turnover, 188-20 projected GST turnover), tested against the $75,000 registration threshold ($150,000 for non-profit bodies), s 23-15. GST turnover is a different concept from aggregated turnover and does not apply the s 328-125 connected entity aggregation rules.
Frequently asked questions
What is aggregated turnover?
Your annual turnover plus the annual turnover of every entity connected with you or that is your affiliate, with dealings between them taken out.
Whose turnover do I have to add to mine?
Connected entities and affiliates. Control relationships, family arrangements and common shareholdings all pull other entities in, which is why the number is usually larger than the owner expects.
Which thresholds does aggregated turnover control?
$2 million for the small business CGT concessions, $10 million for small business entity status including the instant asset write-off, and $50 million for the 25% company tax rate.
Is aggregated turnover the same as GST turnover?
No. They are calculated differently and used for different purposes. Using the GST figure to test a CGT concession is a common and expensive substitution.
