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CORPORATE TAX RATES

Paul Money Partners > Blog > CORPORATE TAX RATES

The Taxation Office has released its administrative treatment in relation to the Government’s proposal (Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016, currently before Parliament) to reduce the corporate tax rate. Under these proposals, the tax rate for small business entities will be reduced from 28.5% to 27.5% from 1 July 2016.

The Taxation Office has released its administrative treatment in relation to the Government’s proposal (Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016, currently before Parliament) to reduce the corporate tax rate. Under these proposals, the tax rate for small business entities will be reduced from 28.5% to 27.5% from 1 July 2016.

The ATO indicated that until the new law passes, it will continue to process small business company tax returns at the 28.5% rate, and use the 28.5% rate in PAYG installment calculations.

If the new law is passed, the ATO will contact affected taxpayers and amend their returns, and the ATO will pay interest on over-payments of tax.