BRINGING FORWARD SMALL BUSINESS TAX CUTS BY FIVE YEARS
Prime Minister Scott Morrison has announced that the Government will bring forward its planned tax cuts for small business by five years. He said the Government would introduce the necessary legislation in Parliament during mid-October 2018. Labor has indicated it will support the bring-forward of the tax cuts, thereby ensuring quick passage of the legislation through Parliament.
As shown in the following tables, this means businesses with a turnover below $50 million will have a tax rate of 25% in 2021–2022 rather than from 2026–2027 as currently legislated. Similar timing changes will apply to the roll-out of the 16% tax discount for unincorporated businesses.
Mr Morrison said this means that a small business that makes $500,000 profit will have an additional $7,500 in 2020–2021 and $12,500 in 2021–2022.
Company tax rates
|
|
2018–2019 |
2019–2020 |
2020–2021 |
2021–2022 |
2022–2023 |
2023–2024 |
2024–2025 |
2025–2026 |
2026–2027 |
|---|---|---|---|---|---|---|---|---|---|
|
Corporate |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
|
Existing legislated rates |
27.5 |
27.5 |
27.5 |
27.5 |
27.5 |
27.5 |
27 |
26 |
25 |
|
Fast-tracked rates |
27.5 |
27.5 |
26 |
25 |
25 |
25 |
25 |
25 |
25 |
|
|
2018–2019 |
2019–2020 |
2020–2021 |
2021–2022 |
2022–2023 |
2023–2024 |
2024–2025 |
2025–2026 |
2026–2027 |
|
Unincorporated |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
(%) |
|
Existing legislated rates |
8 |
8 |
8 |
8 |
8 |
8 |
10 |
13 |
16 |
|
Fast-tracked rates |
8 |
8 |
13 |
16 |
16 |
16 |
16 |
16 |
16 |
If you would like to know more please contact one of our accountants on 07 4639 1099 or come in and see us at 14 Russell Street Toowoomba.