Grange Business Partners

Small business tax rate cuts

The tax rate for companies with an aggregated annual turnover of less than $2m will be reduced by 1.5% (ie from 30% to 28.5%) from the 2015/16 income year. However, the maximum franking credit rate for a distribution will remain at 30%, subject to the company having available franking credits.

A 5% tax discount will be introduced for individual taxpayers with business income from an unincorporated small business. This measure will also apply from the 2015/16 income year.

The discount, given in the form of a tax offset, will apply to the income tax payable on the business income received and will be capped at $1,000 per individual for each income year.

Grange Business Partners (C) 2016 All Rights Reserved.