Small Business Tax Cuts

From the 1st July 2015, the ATO implemented a new two-tier tax system for companies. The tax rates are as follows:

• 28.5% if the company’s aggregated turnover is less than $2 million
• 30% if the company’s aggregated turnover is more than $2 million

As a small company, no action is required at this point. The new rate will automatically be applied to PAYG instalments.