Businesses with a turnover up to $50 million will enjoy lower company tax rates in a deal finally stitched up last week by the Federal Government.
The multi-stage implementation of company tax cuts will see the current 30 percent rate for all businesses above $2 million in turnover reduce down to a rate of 27.5% as follows:
- Businesses with turnover up to $10 million will pay 27.5 percent in this current financial year
- Businesses with turnover up to $25 million will pay 27.5 percent from 1 July 2017
- Businesses with turnover up to $50 million will pay 27.5 percent from the 2018-19 financial year
Small businesses with a turnover under $2 million currently pay 28.5 percent tax, and this will reduce to 27.5% from the current financial year.
The Government’s 10 year plan to introduce a flat rate tax cut of 25% for all businesses hasn’t been passed by the Senate, and looks unlikely to get through any time soon.
If you haven’t booked your tax planning session with your accountant as yet, please contact us on 07 5413 9300.