The Federal Government has fast-tracked corporate tax-cuts for small and medium businesses with turnovers of up to $50m, introducing it to Federal Parliament. So how much tax do we have to pay?
Draft laws to drop the tax rate to 26% in 2020/21, then to 25% the following year cleared the House of Representatives and the Senate last week, and will now proceed for review by the Governor for assent before being made law. This is five years earlier than previously proposed.
This means that we are currently operating under existing law and a tax rate of 27.5% for businesses operating at an aggregated turnover threshold of $50m.
Small business tax rates will remain a hot topic in the lead up to a Federal election in 2019. It can be difficult to decipher what is proposed and what is actually in place. For the most recent information, visit the ATO website or contact us with your questions.