Growing Jobs and Small Business - tax cuts for small business
The government has reduced the income tax rate to 28.5 per cent for small business companies (i.e. with an aggregated annual turnover of less than $2 million).
Companies with an aggregated annual turnover of $2 million or above will continue to be subject to the current 30 per cent tax rate on all of their taxable income.
The current maximum franking credit rate for a distribution remains 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.
Legislation and supporting material
Tax Laws Amendment (Small Business Measures No.1) Act 2015External Link received Royal Assent on 22 June 2015.
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The Government announced it will reduce the company tax rate to 28.5 per cent for companies with aggregated annual turnover less than $2 million.