Accelerated tax rate reduction for small business
Small business is still a vote winner with the Government and Opposition teaming up to accelerate tax cuts for the sector by 5 years impacting on an estimated 3.3 million businesses.
Parliament recently passed legislation to accelerate the corporate tax rate reduction for corporate tax entities that are base rate entities (BREs). Under the new rules:
• A 26% rate will apply to BREs for the year ending 30 June
• A 25% rate will apply to BREs from 1 July 2021
The amending legislation also increased the small business income tax offset rate to 13% of an eligible individual’s basic income tax liability that relates to their total net small business income for the 2020-21 income year and 16% for the 2021-22 income year onwards.
The small business income tax offset continues to be capped at $1,000 per individual per year.
Inside the November Newsletter you will find articles on:
What is a base rate entity?
The new rules for gift cards - what you need to know
What happens if a business ignores the new rules?
What happens if a business becomes insolvent or is sold?
How tampons became a political debate