Meaning of small business
6 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; and
that is not operated by a public company.
However, a small business does not include a body corporate under the Body Corporate and Community Management Act 1997.
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—
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, section 9.
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