Prime Minister Scott Morrison has announced that the Government will bring forward its planned tax cuts for small business by five years. He said the Government would introduce the necessary legislation in Parliament during mid-October 2018. Labor has indicated it will support the bring-forward of the tax cuts, thereby ensuring quick passage of the legislation through Parliament. 

As shown in the following tables, this means businesses with a turnover below $50 million will have a tax rate of 25% in 2021–2022 rather than from 2026–2027 as currently legislated. Similar timing changes will apply to the roll-out of the 16% tax discount for unincorporated businesses.

Mr Morrison said this means that a small business that makes $500,000 profit will have an additional $7,500 in 2020–2021 and $12,500 in 2021–2022.

 

  2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026 2026-2027
 Corporate  % % % % % % % % %
 Existing legislated rates  27.5 27.5 27.5 27.5 27.5 27.5 27 26 25
 Fast-tracked rates  27.5 27.5 26 25 25 25 25 25 25

 

 

   2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 2025-2026  2026-2027
 Unincorporated % % % % % % % % %
 Existing legislated rates  8 8 8 8 8 8 10 13 16
 Fast-tracked rates  8 8 13 16 16 16 16 16 16

 

Source:

www.pm.gov.au/media/fast-tracking-tax-relief-small-and-medium-businesses

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