According to the Budget the government of Australia is to decrease the income tax rate for small companies to 28.5 per cent with an aggregated annual turnover of less than AUD 2 million. Companies with an aggregated annual turnover of AUD 2 million or above will continue to be subject to the existing 30 per cent tax rate on all their taxable income.
Also small businesses will be allowed to claim deduction of certain professional expenses and accelerated depreciation of assets costing below AUD 20,000.
These changes apply to assessments for income years starting on or after 1 July 2015.
