The Treasury Laws Amendment (Enterprise Tax Plan No 2) Bill 2017 amends the Income Tax Rates Act 1986

to progressively extend the lower 27.5% corporate tax rate to all corporate tax entities by the 2023–2024 income year. The aggregated turnover thresholds required to qualify for the 27.5% rate would be: 

  • for the 2017–2018 income year, $25 million;
  • for the 2018–2019 income year, $50 million;
  • for the 2019–2020 income year, $100 million;
  • for the 2020–2021 income year. $250 million;
  • for the 2021–2022 income year, $500 million; and
  • for the 2022–2023 income year, $1 billion.

The 27.5% rate will apply to:

  • the taxable income of ordinary corporate tax entities;
  • the standard component of taxable income of companies (other than life insurance companies) that are retirement savings account (RSA) providers;
  • the amount that exceeds the pooled development fund (PDF) component of taxable income of companies that become PDFs during an income year;
  • the ordinary class of taxable income of life insurance companies; and
  • the taxable income of public trading trusts.

The corporate tax rate would then be cut, for all corporate tax entities (irrespective of turnover ie the turnover threshold would be abolished), to:

  • for the 2024–2025 income year, 27%;
  • for the 2025–2026 income year, 26%; and
  • for the 2026–2027 and later income years, 25%.