Finally the Enterprise Tax Bill that was announced in the last Federal Budget has passed through parliament. Here’s a quick summary of what the negotiated bill enables:
- Increase the aggregated turnover threshold to $10 million for access to small business tax concessions from 2016-17.
This means that any businesses with an aggregated turnover of under $10 million can now access a raft of concessions previously only accessible to small businesses under $2 million. The main concession left out is access to the small business CGT concessions, which still requires the entity to pass a $2 million turnover test or a $6 million net asset value test. - Progressive reductions in the corporate tax rate for businesses with a turnover under $50 million.
Businesses with an aggregated turnover of less than $10 million will benefit from a company tax reduction to 27.5% this financial year. - For unincorporated businesses such as sole traders, partnerships and trusts:
- An increase to the aggregated turnover threshold to $5 million (up from $2 million) for access to the small business income tax offset from 2016-17, and
- An increase to the unincorporated small business tax discount to 8% from 2016-17. The offset will be capped at $1,000.
This article originally appeared in Your Knowledge by Knowledge Shop.
Disclaimer
MGI refers to one or more of the independent member firms of the MGI international alliance of independent auditing, accounting and consulting firms. Each MGI firm in Australasia is a separate legal entity and has no liability for another Australasian or international member’s acts or omissions. MGI is a brand name for the MGI Australasian network and for each of the MGI member firms worldwide. Liability limited by a scheme approved under Professional Standards Legislation.
