The Government has introduced the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017 which, if passed, will amend the Income Tax Rates Act 1986 (Cth) to provide that a corporate tax entity will only qualify for the lower 27.5% corporate tax rate if:
- no more than 80% of its assessable income is of a passive nature (for example, interest, dividends or royalties);
- the aggregated turnover of the corporate tax entity for the income year is less than the aggregated turnover threshold for that income year (which, for the 2017-18 income year is $25 million and for the 2018-19 income year, is $50 million).
The amendments will apply from the 2017-18 income year.
See the Minister for Revenue and Financial Service website for more information.