The small business company tax rate of 28.5% will be further reduced to 27.5% for the 2017 income year. This is part of the Government's long-term plan to reduce the corporate rate to 25% for all corporate entities over a 10 year period.
This lower rate now applies to small business entities (SBE) with a turnover (that is, combined turnover) less than $10 million that are:
- Public trading trusts
- Corporate unit trusts
The company tax rate will remain at 30% for all other companies that are not SBE.