Blog

Reminder of small business tax cuts

Scott Robertson - Thursday, June 18, 2015

The ATO has reminded taxpayers that, from 1 July 2015, a new two-tier company tax system took effect and applies to all companies.

This system sees the whole of a company’s taxable income subject to the following rates:

  •  28.5% if the company’s aggregated turnover is below a $2 million threshold (i.e., a small business entity or ‘SBE’); or
  •  30% if the company’s aggregated turnover is equal to or above a $2 million threshold.
 Importantly, companies don’t need to do anything now – if identified as a small business, the new rate will be automatically applied to their PAYG instalments rate or on their next activity statement.

 

             

             

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