Small business company tax rate reduced

The small business company tax rate has been reduced from 30 per cent to 28.5 per cent. The new lower rate applies to small businesses that are corporate unit trusts and public trading trusts.

When completing company tax returns, use the new rate of 28.5 per cent on calculation statements at label T1 – Tax on taxable or net income. The franking credit cap has remained unchanged at 30 per cent, and still applies to those eligible for the reduced company tax rate of 28.5 per cent.