Business and Corporate Changes FY 2015

Company Tax Rate

Government confirmed its commitment to cut the
company tax rate by 1.50% to 28.50% from 1 July 2015.

For large companies (taxable income > $5m) the
reduction will be offset by the Govts 1.50% paid parental
levy which will effectively bring the company tax rate back
to 30%.

SME Instant Asset Write Off

The bill which included the proposed reduction in the
upfront asset write off was defeated in the Senate on 25
March 2014.

The $6,500 write off therefore still stands despite the
Governments intention to scale it back to $1,000 from 1
January 2014.

Budget Paper was silent on this matter.

R & D Tax Offset Rates

Currently the following R&D Tax Concessions are

45% refundable tax offset for eligible entities with an
aggregated turnover of less than $20m provided they are
not controlled by an income tax exempt entity.

40% non-refundable tax offset for all other entities.

Rates of the above refundable and non-refundable
offsets will be reduced by 1.5 percentage points to
43.50% and 38.50% respectively.

Reduction in rates to apply from 1 July 2014.

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