Restricting access to the small business company tax rate reduction entered Parliament

“the amending legislation is not retrospective and will apply from the 2018 income year.  This removes the possibility of retrospective changes to a company’s tax rate and maximum franking percentage rate for the 2017 income year. And, removing the carrying on a business test reduces the uncertainty. But, this is another change for practitioners to get across.”

Changes will also be made to the maximum franking percentage rules. In determining a company’s maximum franking rate for a particular income year you need to look at the tax rate that would apply in the current year if the following assumptions are made: 

  • The company’s aggregated turnover in the current year is the same as in the previous year;
  • The company’s assessable income in the current year is the same as in the previous year; and
  • The company’s passive income in the current year is the same as in the previous year.

 

…find out more about what may be of your prior concern for your company and personal business…please come and talk to Tax Ideas Accountants & Advisers https://taxideas.com.au/booking/

Tel: (02) 8318 1545

Posted in News & Events, Tax Updates.