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Company Tax Rates

The Government has confirmed its intention to eventually reduce the company tax rate to 25 percent for all companies. This is a positive move to keep Australia competitive with our international trading partners, however, the challenge for the current Government is to get these proposed laws through parliament having already encountered significant opposition.

The following table provides a summary of the proposed company tax rate changes and note the timing of the changes and the qualifying turnover thresholds. Note, these changes are yet to be approved by the House of Representatives.

Financial

Years

Aggregated Annual

Turnover Less Than

Company

Tax Rate

2016/17

$10m

27.5%

2017/18

$25m

27.5%

2018/19

$50m

27.5%

2019/20 to 2024

$50m

27.5%

2024/25

$50m

27%

2025/26

$50m

26%

2026/27

$50m

25%

Please note, the proposed decrease in the company tax rate and the increase in the qualifying turnover threshold for small businesses will not apply if you operate your business through a family trust and distribute profits to a corporate beneficiary. In this instance, the company is not classified as a business and therefore the applicable tax rate will remain at 30%.


Click HERE to download the full edition of The Business Accelerator Magazine for June 2017

Other Articles in This Edition:

Some of the Biggest Mistakes Small Businesses Make With Their Websites
Federal Budget – Economic Summary
Small Business - $20k Small Business Immediate Tax Deduction
Small Business - Extension of Taxable Payments Reporting to Courier and Cleaning Industries
Small Business - Access to CGT Concessions
Small Business - Looking to Employ Foreign Workers?
Individual Tax Rates
Individuals - Changes to the Medicare levy
Restricting Residential Investment Property Deductions
Individuals - Higher Education Reform  
Superannuation - Contributing Proceeds from Downsizing to Superannuation
Superannuation - First Home Super Saver Scheme
GST Changes - Purchasers to Pay GST on New Residential Premises
GST Changes - Digital Currency & Low-Value Imports
Tax Integrity Measures

DISCLAIMER: This document contains general advice only and is prepared without taking into account your particular objectives, financial circumstances and needs.  The information provided is not a substitute for legal, tax and financial product advice.  Before making any decision based on this information, you should speak to a licensed financial advisor who should assess its relevance to your individual circumstances.  While the firm believes the information is accurate, no warranty is given as to its accuracy and persons who rely on this information do so at their own risk.  The information provided in this bulletin is not considered financial product advice for the purposes of the Corporations Act 2001.

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