Posts Tagged "federal budget"

How the 2016 Federal Budget Affects Your Business

Posted by on May 25, 2016 in Blog

How the 2016 Federal Budget Affects Your Business

The Federal Budget has been relatively kind of late to small businesses with some significant initiatives being offered up. Here is a snapshot of some of the measures which may have a direct effect on your business. Of course with the Federal Election later this year, anything could happen so enjoy the benefits while they last. Lower Tax Rate for Businesses Earning Less than $10 million Last year the company tax rate of 28.5% was introduced to companies with a turnover of less than $2 million to be applied to the financial year ending 30 June 2016. Come July 2016, the threshold will increase from $2 million to $10 million and a lower tax rate applied. Note however the $2 million threshold will be retained for small businesses to access Capital Gains Tax (CGT) concessions. This policy change will affect about 870,000 businesses employing 3.4 million Australians. The rate for the financial year ending June 2017 will be reduced to 27.5% for companies earning less than $10 million. Those opting for PAYG installments will benefit from the lower tax rate as of July 2016. This year’s budget aims to reduce the fiscal rate to 25% over the next decade....

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