From 1 July 2015 a new two-tier company tax system took effect and applies to all companies. This system sees the whole of a company’s taxable income subject to the following rates:
28.5% if the company’s aggregated turnover is below a $2 million threshold (i.e. a small business entity) 30% if the company’s aggregated turnover is equal to or above a $2 million threshold. Companies don’t need to do anything now. If identified as a small business, the new rate will be automatically applied to their PAYG instalments rate or on their next activity statement.