ATO has reminded companies that the proposed changes affecting eligibility for the lower company tax rate have not yet passed. This means that the lower 27.5% tax rate continues to apply to base rate entities defined by current law. In the tax return, base rate entities must denote that they are such at item 3 (status of company) and then use the 27.5 tax rate for their calculation station on their net income. Tax rate for companies that are not base rate entities is 30%. Would like to know whether your company qualifies as a base rate entity? Contact us today.
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