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Australia to Bring Forward Scheduled Tax Cuts for SMEs — Orbitax Tax News & Alerts

Australia's Federal Treasurer, Josh Frydenberg, has announced that the government will submit legislation during the next session of parliament to amend the currently scheduled reduction in the corporate tax rate for SMEs so that the rate cuts will apply earlier. Currently, the corporate tax rate for business with turnover below AUD 50 million is scheduled to be reduced to 27% from 1 July 2024, to 26% from 1 July 2025, and to 25% from 1 July 2026. The government proposes to instead cut the rate directly to 26% from 1 July 2020 and to 25% from 1 July 2021. In addition, the government is proposing to push forward an increase in the tax discount for unincorporated businesses from 8% to 13% from 1 July 2020 and to 16% from 1 July 2021.