Business Tax Rate Falls To 26 Percent
The first of July saw the company tax rate for small and family businesses dropping from 27.5% to 26%.
The reduction for businesses with turnover of less than $50 million will drop again in 2021 down to 25%.
The change will have knock on effects such as the impact on the maximum franking rate which applies to dividends paid by some companies.
In addition the rate of the small business income tax offset for unincorporated businesses will increase from 8% to 13%.
As always be sure to seek advice on any of the recent changes from your accountant. And if you’re looking for local expertise in this area be sure to check out the member section of the BNCC website, including our major partners at Northern Business Consultants.