Reduction in the company tax rate

As announced in the 2016-17 Federal Budget, the company tax rate will be progressively reduced to 25% over the next 10 years.  However, the measure was amended by Parliament.  The amended measure will apply as follows:

  • 2016-17 financial year: 27.5% for small businesses with an aggregated turnover of less than $10 million;
  • 2017-18 financial year: 27.5% for small businesses with an aggregated turnover of less than $25 million;
  • 2018-19 financial year: 27.5% for small businesses with an aggregated turnover of less than $50 million.