Bill
Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018
passed, as at 2018-10-25. Treasury portfolio.
- Sponsor
- Not recorded
- Portfolio
- Treasury
Recorded stages
- introduced — 2018-10-16
- second reading — 2018-10-16
- second reading — 2018-10-16
- second reading — 2018-10-16
- third reading — 2018-10-16
- introduced — 2018-10-17
- second reading — 2018-10-17
- second reading — 2018-10-18
- third reading — 2018-10-18
- passed — 2018-10-18
- royal assent — 2018-10-25
Divisions
Plain-language summary
Written by a model from the explanatory memorandum; not the record, as at 2018-10-16.
The bill would cut the corporate tax rate for certain small and medium businesses and increase a tax offset for their owners.
It would lower the corporate rate for base rate entities—those with passive income at or below 80% and turnover under $50 million—from 27.5% to 26% in 2020-21 and then to 25% from 2021-22 onward.
The small business income tax offset would rise to 13% of eligible individuals' tax liability in 2020-21 and to 16% from 2021-22, with the annual cap remaining at $1,000.
- Accelerates the reduction of the corporate tax rate for base rate entities.
- Increases the small business income tax offset rate.
- Sets the corporate rate at 26% for 2020-21 and 25% for later years.
- Sets the offset rate at 13% for 2020-21 and 16% for later years.
- Retains the $1,000 annual cap on the offset.
Corporate tax entities that are base rate entities and eligible individuals with small business income.
Sources
em
billhome
frl act