Blog - Tax

Company tax rate lowered from 27.5% Oct 25, 2018

With a speed not usually seen with tax legislation, the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 was introduced into parliament on the 16th October and passed both houses on the 18th October. The Governor-General gave his royal assent on the 25th October.

Companies that meet the below criteria will have a tax rate of 26% in 2020-2021 and 25% in 2021-2022. To be eligible for the lower tax rates the companies need to;

  • Have an aggregated turnover of less than $50 million; and
  •  Pass the base rate entity passive income test (BREPI) by having no more that 80% of their assessable income as passive income.
This brings forward the 25% tax rate that wasn’t planned to start until the 2026/2027 years.

Additional Tax Deductions for Farmers Oct 10, 2018

There is now further relief for primary producers to allow immediate deductions for fodder storage assets. The 2015-2016 Budget proposed the introduction of legislation that allows primary producers to deduct the capital expenditure of fodder storage assets over three years instead of their effective lives.

Access to the lower Corporate tax rate: The new 'Passive Income Test'. Sep 6, 2018

The Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2018 received royal assent on the 31 August 2018. These new laws further restrict which companies will be able to apply the lower tax rate of 27.5%. 

The new laws, replace the carrying on a business test with a base rate entity passive income (BREPI) test. This will mean companies with mainly passive income will be ineligible for the lower rates of tax. A company will pass the BREPI test if no more than 80% of the entity’s assessable income for the year is BREPI.

Does this apply to your company?

PART 2 - Property development and the new GST withholding regime is now law Jul 24, 2018

The Treasury Laws Amendment (2018 Measures No. 1) Bill 2018 was passed on the 29 March 2018. This legislation requires the purchaser to pay any amount of GST to the ATO in respect of the purchase of certain residential properties. We released some insight into this legislation when it was still in the House of Representatives which is still valid. This blog focuses on the notification requirements of both the vendors and purchasers.

Daryl Corpe
Chairman of Partners

Luxury car tax refund for Primary Producers and Tourism Operators Jul 9, 2018

The Palaszczuk Government’s tax on ‘luxury vehicles’ commences 1 July 2018 imposing an extra 2% stamp duty on vehicles costing above $100,000. Although this is unavoidable, it provides a great opportunity to remind you of the refund available to Primary Producers and Tourism operators for the Federal Government’s Luxury Car Tax.

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