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
available:
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.
