09 Oct Small Business Company Tax Rate Cut

Parliament has passed legislation which will implement a 2015 Budget measure to reduce the company tax rate from 30% to 28.5% for companies that are small business entities with an aggregated turnover of less than $2 million.

Those companies with aggregated annual turnover of $2 million or more will continue to be subject to the current 30 per cent tax rate on all their taxable income.

The current maximum franking credit rate for a distribution will remain unchanged at 30 per cent for all companies, maintaining the existing arrangements for investors.

These changes apply to assessments for income years starting on or after 1 July 2015. Visit the ATO website to find out more.