Seasonal business activity has ceased completely 043-03130100

The net assessable profit from a business which operates for only 4 calendar months per year and is completely closed for the remainder of the year is $15,000. The assessment of the current rate of income to be maintained during the period the business operates is based upon the 4 months when business activities are undertaken. The remaining 8 month period of the year when the business is closed is disregarded when striking the current rate of income (because no income is earned by the business during this period and therefore $ nil assessable income is maintained during this period) The rate of assessable income during the period the business operates can be calculated as:

Net profit during period of activity = $15,000

Divided by

Number of months per year the business operates = 4

Multiplied by

Number of months in a calendar year (to annualise) = 12

= $45,000

Income at the rate of $45,000 pa should be maintained as assessable income during the period the business is operating.