In the 2016–17 Budget, it was announced by the government that it will progressively reduce the corporate tax rate progressively from 30% to 25%
Bear in mind, that currently, there is a small business corporate tax rate which is less than the 30% tax rate.
- Companies with a total annual turnover of below $2 million are taxed at 28.5%
- Companies with a total annual turnover of $2 million or higher are generally taxed at 30%
It was also announced that there will be a reduction in the small business tax rate from 28.5%t to 27.5% for the 2016/17 income year. The turnover threshold to qualify for the lower rate will start at $10 million and progressively rise until the 27.5% rate applies to all corporate tax entities subject to the general company tax rate in the 2023/24 income year.
The corporate tax rate will further be reduced to 27% for the 2024/25 income tax year and by one percentage point in each subsequent year until it reaches 25% for the 2026/27 income year.
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