Budget 2017/2018

The 2017-18 Federal Budget was released on 9 May 2017. Our Tax Brief outlines the main tax measures and what they will mean for Australian businesses.

ATO documents

Draft Taxation Ruling

TR 2017/D3: Income tax: taxation of rights and retail premiums under renounceable rights offers where shares held on capital account

Class Ruling

CR 2017/29: Income tax: Suncorp Group Limited: Suncorp Group Limited Capital Notes

Law Companion Guideline

LCG 2017/3: Superannuation reform: Superannuation death benefits and the transfer balance cap

Notice of Withdrawal

ATO ID 2002/801: Withholding tax on dividends paid by a Pooled Development Fund

Corporate tax rate

The Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 was passed by the House of Reps on 9 May 2017 and now awaits Royal Assent. The Bill will reduce the corporate tax rate for businesses with an aggregated turnover of less than $50m to 25 per cent by the 2026/27 income year.

The Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017 was introduced into the House of Reps on 11 May 2017. It contains amendments to re-introduce the remaining elements of the Government’s Enterprise Tax Plan, to eventually reduce the corporate tax rate to 25% for all companies by the 2026/27 income year.

Progress of legislation

As at 12.5.17

Bill

Treasury Laws Amendment (Enterprise Tax Plan No. 2) Bill 2017

Description

Extends the reduction of the corporate tax rate to 25 per cent by 2026/27 to businesses with turnover of more than $50 million.

Status

Introduced into House of Reps 11.5.17.

Bill

Treasury Laws Amendment (2017 Enterprise Incentives No. 1) Bill 2017

Description

Similar business test; Effective life assessment on intellectual property

Status

Introduced into House of Reps 30.3.17.

Bill

Treasury Laws Amendment (GST Low Value Goods) Bill 2017

Description

GST imposed on low cost imported goods

Status

Introduced into House of Reps 16.2.17.

Bill

Superannuation (Objective) Bill 2016

Description

Superannuation reform package

Status

Introduced into Senate 23.11.16. Awaiting passage by Senate.

Bill

Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016

Description

Immediately reduces the tax rate for businesses with turnover of up to $10 million. Reduces the corporate tax rate for all businesses with an aggregated turnover of less than $50m to 25 per cent by 2026/27. Increases the unincorporated tax discount for small business.

Status

Passed House of Reps 9.5.17. Awaiting Royal Assent.