Tax Laws Amendment (Small Business Measures No. 1) Act 2015 (66 of 2015)

Schedule 1   Amendments

Part 1   Reducing the corporate tax rate for small business entities

Income Tax Rates Act 1986

2   Subsections 23(6) and (7)

Repeal the subsections, substitute:

(6) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than 55% of the amount (if any) by which the taxable income of the company exceeds $416, if:

(a) the company is a non-profit company; and

(b) the taxable income is not greater than:

(i) if the company is a small business entity for a year of income - $863; or

(ii) otherwise - $915.

(7) The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997)) must not be greater than:

(a) if the company is a small business entity for a year of income - 42.75%; or

(b) otherwise - 45%;

of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.