Taxing legislation

1 September 2016

The Australian Government has introduced its Ten Year Enterprise Tax Plan legislation into parliament.

The plan includes a reduction in the corporate tax rate to 27.5% from 1 July 2016.

As detailed during the election campaign, the Government further proposes to decrease the tax rate on all companies to 25% by 2026-27.

The Ten Year Enterprise Tax Plan builds on initiatives included in the 2015-16 Budget, such as a 1.5% reduction in the tax rate for small companies and the introduction of a 5% tax discount for unincorporated small businesses as well as immediate deductibility for assets that cost less than $20,000.

The Government is providing support for over 90,000 additional small businesses (incorporated and unincorporated) by increasing the turnover threshold to $10 million, up from $2 million. These small business concessions include access to immediate deductibility for assets costing less than $20,000 acquired before 30 June 2017, the lower corporate tax rate and other tax simplification provisions. The $2 million threshold for access to the small business CGT concessions will remain unchanged.

From 1 July 2016, the unincorporated small business tax discount will be available to businesses with an annual turnover of less than $5 million, up from the current threshold of $2 million, and will be increased to 8%. The maximum discount available will remain at $1,000.

More information: