The government has proposed to limit the entities subject to lower corporate tax rate to base rate entities with no more than 80% passive income from 2017/18. At the time of writing, this law has not yet passed. For the 2017/18 year, the aggregated turnover threshold is $25m and the base rate entity tax rate is 27.5%.The small business income tax offset remains the same, which is 8% discount of the income tax payable on the business income received from a small business entity (other than a company) with aggregated turnover of less than $5m, up to a maximum of $1,000 a year.
An immediate deduction is still available for an asset costing less than $20,000 acquired and first used or installed ready for use on or before 30 June 2018.
The balance of the general small business pool is also immediately deducted if the balance is less than $20,000 at 30 June.