The Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017 was introduced into the House of Representatives on May 11, 2017. The bill proposes to give effect to the remaining elements of the government’s Enterprise Tax Plan to progressively lower the corporate tax rate to 25% for all corporate tax entities by the 2026-2027 income year.
Australia’s current corporate tax rate of 30% is one of the highest in the world. A progressive reduction is a step in the right direction to bring Australia in line with the lower headline corporate tax rates across the world. Australian franking entities should observe the impact that a lower corporate tax rate would have on the rate at which available franking credits may be utilised going forward