A last-minute deal has been struck between the Government and Senator Nick Xenophon to pass the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016.
The revised Bill enables:
- An increase to the aggregated turnover threshold to $10m for access to small business tax concessions from 2016-2017
- NB: Current aggregated turnover threshold of $2m will be retained for the small business CGT concessions
- Progressive reductions in the corporate tax rate to:
|Corporate tax rate||Less than $10m||Less than $25m||Less than $50m|
|2018-19 to 2023-24||27.5%||27.5%||27.5%|
- An increase to the aggregated turnover threshold to $5m for access to small business income tax offset from 2016-17
- An increase to the unincorporated small business tax discount to 8% from 2016-17. Offset to be capped at $1,000
The Bill has now passed the Senate, with the amendment now to go back to the House of Representatives where the Government holds majority. The next sitting day to formally pass this Bill is 9 May.