Reduction in the Company Tax Rate

Reduction in the company tax rate

As announced in the 2016-17 Federal Budget, the company tax rate will be progressively reduced to 25% over the next 10 years. However, the measure was amended by Parliament. The amended measure will apply as follows:

• 2016-17 financial year: 27.5% for small businesses with an aggregated turnover of less than $10 million;

• 2017-18 financial year: 27.5% for small businesses with an aggregated turnover of less than $25 million;

• 2018-19 financial year: 27.5% for small businesses with an aggregated turnover of less than $50 million.

From 1 July 2024 onwards, the corporate tax rate will progressively decrease every financial year, eventually falling to 25% in the 2026-27 financial year. If the amendments are approved by the House of Representatives, then the following rates will apply:

• Commencing 1 July 2024: 27%

• Commencing 1 July 2025: 26%

• Commencing 1 July 2026: 25%.

The company tax rate remains at 30% for all companies unless they qualify for the reduced rate up until 2023-24 when all companies qualify for the lower rate.

 

If you have any questions or need some advice, please contact us on:

  • Phone: 08 8186 8444
  • Email: info@sbssa.com.au

Leave a Reply

Your email address will not be published.