Published on 11/05/2016 by Punchmedia

How Will Budget 2016 Affect Your Business?

The federal government has gifted small and medium enterprises with $5.3 billion in tax cuts in this year's budget but how will it affect your business? The centrepiece of the pitch is extending the small business tax cut so that from July 1 the corporate tax rate will be 27.5 per cent for the 870,000 businesses with turnover of up to $10 million. This builds on the 2015 budget, which cut the tax rate for small businesses with less than $2 million turnover to 28.5 per cent. The Breakdown:

  • Small business tax rate lowered by 1 per cent to 27.5 per cent from July 1, with the turnover threshold increased from $2 million to $10 million.
  • 870,000 more businesses to be taxed at small business rate.
  • The threshold will be pushed out to $100 million by 2020, and all businesses, including large firms, to pay 25 per cent company tax within a decade.
  • Businesses with a turnover up to $10 million will pay a reduced company tax rate of 27.5 per cent.
  • Businesses with a turnover up to $100 million to gradually receive 27.5 per cent rate by 2020.
  • All businesses to receive reduced company tax rate of 27.5 per cent by 2024 and 25 per cent by 2027.
  • Unincorporated small businesses with a turnover less than $5 million get a tax discount of 8 per cent.
  • Businesses with a turnover up to $10 million receive $20,000 instant asset write off, expiring in June 2017.
The specific impact will vary by factors including, but not limited to, revenue, taxable income and business type. * With AFR/SMH  

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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