Reduced tax rate and Small Business turnover increased

Small business is the big winner from the 2016-17 Federal Budget.

The government will move towards reducing the company tax rate to 25% over 10 years. From 1 July 2016 the tax rate for small company business will be cut to 27.5% to which this tax rate will be available to small company businesses with annual aggregated turnover of $10 million.

The turnover over threshold will increase progressively to ultimately have all companies eligible for the 27.5% tax rate by 2023/24 for all companies with annual aggregated turnover less than $1 billion. In the 2024/25 income year the company tax rate will be reduced to 27% and then further be reduced by 1% in the 2025/26 & 2026/27 years until reaching 25%.

Effective from 1 July 2016 the small business entity turnover threshold will increase from $2 million to $10 million which will allow for business with annual aggregated turnover of less than $10 million to access certain small business concessions such as:

  • The lower 27.5% corporate tax rate.
  • Simplified depreciation including the ability to claim an immediate deduction for an asset purchased costing less than $20,000 until 30 June 2017.
  • The option to account for GST on a cash basis.

However, the existing $2 million turning threshold will be retained for accessing the small business capital gains tax concessions.


Jun 2017

Introducing Our New Partner

Learn a little more about our newest partner and what shaped his path here – in his own words.   Looking back I always had
Read more


May 2016

PAYG Instalments in Australia

Different to PAYG withholding, PAYG instalments is a system that allows you and your business to meet your income tax obligations by making payments at the
Read more

Work with an accountant
that will put you first

Contact Us