New Grants

New business tax rates were introduced in the Enterprise Tax Plan 2016 Bill. Amendments were accepted by the Government and received Royal Assent on 19 May 2017.

For small business entities the corporate tax rate is reduced from 28.5% to 27.5% for the 2016–17 income year

The aggregated turnover threshold to qualify as a small business has been increased from $2 million to $10 million.

Small business entities Tax rates 

Year Aggregated annual turnover threshold ($m) Entities under the threshold Other corporate tax entities
2015–16

$2m

28.5% 30.0%
2016–17 $10m 27.5%

30.0%

 

Omibus FY17 R&D Tax Incentive rate change from 45% to 43.5%

On 16 September 2016, the Budget Savings (Omnibus) Act 2016, which reduced the rates. The R&D Tax Incentive rate for FY17 was changed from 45% to 43.5% refundable tax credit to companies with an aggregated turnover of less than $20 million and from 40% to 38.5% non-refundable offset to all others companies.

How does this effect Small Business (under $10m turnover) claiming R&D Tax incentive FY17.

Due to an add back of R&D expenditure, only businesses with current or carried forward losses will receive the full rebate.  As such businesses:

  • with under $20m turnover will receive a 13.5% net tax benefit
  • with over $20m turnover will receive an 8.5% non-refundable tax benefit
  • small businesses (under $10m turnover) will receive a 16% net tax benefit

R&D Tax Incentive registration for FY17 with AusIndustry opens 1st July 2017 for standard income year (July – June).

Treadstone is a registered tax agent for R&D tax incentive.  Our R&D tax consultants provide a hands on approach to preparing your R&D Tax Incentive registration and tax schedules.

To find out what your R&D tax rebate for FY17 will be contact us or call  (03) 9008 5937  or (02) 8378 2520.

To find out if you are eligible try our R&D tax wizard.