Source: https://www.legislation.gov.au/Details/C2017A00041
Timestamp: 2018-01-24 09:54:33
Document Index: 160617189

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Details: C2017A00041
- C2017A00041
Act No. 41 of 2017 as made
Originating Bill: Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016
Registered 23 May 2017
C2017A00041
No. 41, 2017
Schedule 1—Reducing the corporate tax rate 4
Part 1—Amendments commencing 1 July 2016 4
Income Tax Rates Act 1986 4
Part 2—Amendments commencing 1 July 2017 5
Income Tax Rates Act 1986 5
Part 3—Amendments commencing 1 July 2018 7
Income Tax Rates Act 1986 7
Part 9—Amendments commencing 1 July 2024 8
Income Tax Rates Act 1986 8
Part 10—Amendments commencing 1 July 2025 9
Income Tax Rates Act 1986 9
Part 11—Amendments commencing 1 July 2026 10
Income Tax Rates Act 1986 10
Part 12—Application of amendments 11
Schedule 2—Amount of tax discount for unincorporated small businesses 12
Part 1—Amendments commencing 1 July 2016 12
Part 2—Amendments commencing 1 July 2024 13
Part 3—Amendments commencing 1 July 2025 14
Part 4—Amendments commencing 1 July 2026 15
Part 5—Application of amendments 16
Schedule 3—Access to small business concessions, etc. 17
Part 1—Amendments 17
Part 2—Application of amendments 21
Schedule 4—Main consequential amendments relating to imputation 22
Part 1—Amendments commencing 1 July 2016 22
Part 3—Application of amendments 28
Schedule 5—Other consequential amendments 29
Part 1—Amendments commencing 1 July 2016 29
Part 2—Amendments commencing 1 July 2017 30
Income Tax Assessment Act 1997 30
Part 4—Amendments commencing 1 July 2024 31
Part 5—Amendments commencing 1 July 2025 32
Part 6—Amendments commencing 1 July 2026 33
[Assented to 19 May 2017]
This Act is the Treasury Laws Amendment (Enterprise Tax Plan) Act 2017.
5. Schedule 1, Part 9
1 July 2024.
6. Schedule 1, Part 10
7. Schedule 1, Part 11
1 July 2026.
8. Schedule 1, Part 12
9. Schedule 2, Part 1
10. Schedule 2, Part 2
11. Schedule 2, Part 3
12. Schedule 2, Part 4
14. Schedule 3, Part 1
15. Schedule 3, Part 2
16. Schedule 4, Part 1
17. Schedule 4, Part 3
18. Schedule 5, Part 1
19. Schedule 5, Part 2
20. Schedule 5, Part 4
21. Schedule 5, Part 5
22. Schedule 5, Part 6
Schedule 1—Reducing the corporate tax rate
Part 1—Amendments commencing 1 July 2016
1 Paragraph 23(2)(a)
Omit “28.5%”, substitute “27.5%”.
2 Paragraph 23(3)(b)
(i) if the company is a small business entity for a year of income—27.5%; or
3 Paragraph 23(4)(c)
4 Subparagraph 23(6)(b)(i)
Omit “$863”, substitute “$832”.
5 Paragraph 23(7)(a)
Omit “42.75%”, substitute “41.25%”.
6 Paragraph 25(a)
Part 2—Amendments commencing 1 July 2017
8 Paragraph 23(2)(a)
Omit “small business entity”, substitute “base rate entity”.
9 Subparagraph 23(3)(b)(i)
10 Subparagraph 23(4)(c)(i)
11 Subparagraph 23(6)(b)(i)
12 Paragraph 23(7)(a)
(b) its aggregated turnover (within the meaning of that Act) for the year of income, worked out as at the end of that year, is less than $25 million.
14 Paragraph 25(a)
15 Paragraph 28A(a)
Omit “the rate specified in paragraph 23(2)(b) (about companies other than small business entities)”, substitute “the rate specified in paragraph 23(2)(b) of this Act”.
Part 3—Amendments commencing 1 July 2018
16 Paragraph 23AA(b)
Omit “$25 million”, substitute “$50 million”.
Part 9—Amendments commencing 1 July 2024
Omit “27.5%”, substitute “27%”.
34 Subparagraph 23(3)(b)(i)
35 Subparagraph 23(4)(c)(i)
36 Subparagraph 23(6)(b)(i)
Omit “$832”, substitute “$817”.
37 Paragraph 23(7)(a)
Omit “41.25%”, substitute “40.5%”.
38 Paragraph 25(a)
Part 10—Amendments commencing 1 July 2025
39 Paragraph 23(2)(a)
Omit “27%”, substitute “26%”.
40 Subparagraph 23(3)(b)(i)
41 Subparagraph 23(4)(c)(i)
42 Subparagraph 23(6)(b)(i)
Omit “$817”, substitute “$788”.
43 Paragraph 23(7)(a)
Omit “40.5%”, substitute “39%”.
44 Paragraph 25(a)
Part 11—Amendments commencing 1 July 2026
45 Paragraph 23(2)(a)
Omit “26%”, substitute “25%”.
46 Subparagraph 23(3)(b)(i)
47 Subparagraph 23(4)(c)(i)
48 Subparagraph 23(6)(b)(i)
Omit “$788”, substitute “$762”.
49 Paragraph 23(7)(a)
Omit “39%”, substitute “37.5%”.
50 Paragraph 25(a)
Part 12—Application of amendments
57 Application of amendments
(1) Subject to the following subitems, the amendments made by Part 1 of this Schedule apply to the 2016‑17 year of income and later years of income.
(2) Subject to the following subitems, the amendments made by Part 2 of this Schedule apply to the 2017‑18 year of income and later years of income.
(3) Subject to the following subitems, the amendments made by Part 3 of this Schedule apply to the 2018‑19 year of income and later years of income.
(9) Subject to the following subitems, the amendments made by Part 9 of this Schedule apply to the 2024‑25 year of income and later years of income.
(10) Subject to the following subitem, the amendments made by Part 10 of this Schedule apply to the 2025‑26 year of income and later years of income.
(11) The amendments made by Part 11 of this Schedule apply to the 2026‑27 year of income and later years of income.
Schedule 2—Amount of tax discount for unincorporated small businesses
1 Subsection 328‑360(1)
Omit “5%”, substitute “8%”.
Part 2—Amendments commencing 1 July 2024
2 Subsection 328‑360(1)
Omit “8%”, substitute “10%”.
Part 3—Amendments commencing 1 July 2025
3 Subsection 328‑360(1)
Omit “10%”, substitute “13%”.
Part 4—Amendments commencing 1 July 2026
4 Subsection 328‑360(1)
Omit “13%”, substitute “16%”.
(1) Subject to the following subitems, the amendments made by Part 1 of this Schedule apply to the 2016‑17 income year and later income years.
(2) Subject to the following subitems, the amendments made by Part 2 of this Schedule apply to the 2024‑25 income year and later income years.
(3) Subject to the following subitem, the amendments made by Part 3 of this Schedule apply to the 2025‑26 income year and later income years.
(4) The amendments made by Part 4 of this Schedule apply to the 2026‑27 income year and later income years.
Schedule 3—Access to small business concessions, etc.
1 Section 152‑5
(a) the entity must be a small business entity or a partner in a partnership that is a small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000;
(a) the entity must be a CGT small business entity or a partner in a partnership that is a CGT small business entity, or the net value of assets that the entity and related entities own must not exceed $6,000,000;
2 Subparagraph 152‑10(1)(c)(i)
Omit “*small business entity”, substitute “*CGT small business entity”.
3 Subparagraph 152‑10(1)(c)(iii)
Omit “small business entity”, substitute “CGT small business entity”.
4 Paragraph 152‑10(1)(c) (note)
5 After subsection 152‑10(1)
(a) you are a *small business entity for the income year; and
(b) you would be a small business entity for the income year if each reference in section 328‑110 to $10 million were a reference to $2 million.
Note: For the purposes of subsection (1A) or (1B), in determining whether an entity would be a small business entity, see also sections 152‑48 and 152‑78.
6 Paragraph 152‑10(1A)(a)
7 Paragraph 152‑10(1A)(d)
8 Subsection 152‑10(1A) (note 2)
9 Paragraph 152‑10(1B)(b)
10 Subsection 152‑10(1B) (note 1)
11 Subsection 152‑10(1B) (note 2)
12 Subsection 152‑48(1)
13 Section 152‑100
14 At the end of subsection 328‑10(1)
Note 1: The CGT concessions mentioned in items 1, 2, 3 and 4 of the table apply only if you are a CGT small business entity (see section 152‑10).
Note 2: The small business income tax offset mentioned in item 6A of the table applies only if you are a small business entity as defined for the purposes of Subdivision 328‑F (see section 328‑357).
15 Paragraph 328‑110(1)(b)
Omit “$2 million” (wherever occurring), substitute “$10 million”.
16 Subsection 328‑110(3) (heading)
17 Paragraph 328‑110(3)(b)
Omit “$2 million”, substitute “$10 million”.
18 Paragraph 328‑110(4)(b)
19 Section 328‑350
328‑350 What this Subdivision is about
You may be entitled to a tax offset if you are an individual:
(a) who is a small business entity; or
(b) whose assessable income includes a share of the net small business income of an unincorporated small business entity; or
(c) whose assessable income includes an amount because you are a partner in a partnership, or a beneficiary in a trust, that is a small business entity.
In working out whether you are or another entity is a small business entity, a special $5 million turnover threshold applies (see section 328‑357).
20 After section 328‑355
328‑357 Special meaning of small business entity for the purposes of this Subdivision—$5 million turnover threshold
For the purposes of this Subdivision, in working out whether you are a *small business entity for an income year, assume that each reference in section 328‑110 to $10 million were a reference to $5 million.
CGT small business entity has the meaning given by subsection 152‑10(1AA).
22 Application of amendments
(2) The following apply to CGT events happening on or after the start of the 2016‑17 income year:
(b) any other amendments made by this Schedule, to the extent that they relate to the amendments mentioned in paragraph (a).
(3) The amendments made by items 15 to 18 of this Schedule, to the extent that they relate to the operation of the Fringe Benefits Tax Assessment Act 1986, apply to the FBT year starting on 1 April 2017 and to later FBT years.
Schedule 4—Main consequential amendments relating to imputation
1 Subsection 36‑55(2) (method statement, step 2)
Omit “the *standard corporate tax rate”, substitute “the entity’s *corporate tax rate for imputation purposes for that year”.
2 Subsection 197‑45(2) (formula)
3 Subsection 197‑45(2)
applicable gross‑up rate means the company’s *corporate tax gross‑up rate for the income year in which the franking debit arises.
4 Subsection 197‑60(3) (paragraph (a) of the definition of applicable tax rate)
Omit “the *standard corporate tax rate”, substitute “the company’s *corporate tax rate for imputation purposes for the income year in which the choice is made”.
5 Subsection 197‑60(4) (formula)
6 At the end of subsection 197‑60(4)
applicable gross‑up rate means the company’s *corporate tax gross‑up rate for the income year in which the choice is made.
7 Subsection 197‑65(3) (formula)
8 Subsection 197‑65(3)
9 Subsection 200‑25(1)
Omit “the standard corporate tax rate”, substitute “the entity’s corporate tax rate for imputation purposes for the income year in which the distribution is made”.
10 Section 202‑55
Omit “the current standard corporate tax rate”, substitute “the entity’s corporate tax rate for imputation purposes for the income year in which the distribution is made”.
11 Subsection 202‑60(2) (formula)
12 At the end of subsection 202‑60(2)
applicable gross‑up rate means the *corporate tax gross‑up rate of the entity making the distribution for the income year in which the distribution is made.
13 Subsection 203‑50(2) (formula)
14 Subsection 203‑50(2)
15 Subsection 215‑20(2) (formula)
16 At the end of subsection 215‑20(2)
17 Subsection 705‑90(3) (formula)
18 At the end of subsection 705‑90(3)
applicable gross‑up rate means the joining entity’s *corporate tax gross‑up rate for the income year that ends, or, if section 701‑30 applies, for the income year that is taken by subsection (3) of that section to end, at the joining time.
19 Paragraph 707‑310(3A)(c) (formula)
20 Section 976‑1 (formula)
21 At the end of section 976‑1
22 Section 976‑10 (formula)
23 At the end of section 976‑10
24 Section 976‑15 (formula)
25 At the end of section 976‑15
26 Subsection 995‑1(1) (definition of corporate tax gross‑up rate)
corporate tax gross‑up rate, of an entity for an income year, means the amount worked out using the following formula:
27 Subsection 995‑1(1) (definition of corporate tax rate)
(a) in relation to a company to which paragraph 23(2)(a) of the Income Tax Rates Act 1986 applies—means the rate of tax in respect of the taxable income of a company covered by that paragraph; or
(b) in relation to another entity—means the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(b) of that Act.
28 Subsection 995‑1(1)
corporate tax rate for imputation purposes, of an entity for an income year, means:
(a) unless paragraph (b) applies—the entity’s *corporate tax rate for the income year, worked out on the assumption that the entity’s *aggregated turnover for the income year is equal to its aggregated turnover for the previous income year; or
(b) if the entity did not exist in the previous income year—the rate of tax in respect of the taxable income of a company covered by paragraph 23(2)(a) of the Income Tax Rates Act 1986.
29 Subsection 995‑1(1) (definition of standard corporate tax rate)
The amendments made by Part 1 of this Schedule apply to the 2016‑17 income year and later income years.
Schedule 5—Other consequential amendments
1 Paragraph 65‑30(2)(a)
Omit “0.285”, substitute “0.275”.
2 Paragraph 65‑35(3A)(a)
Omit “28.5”, substitute “27.5”.
3 Subsection 36‑17(5) (example)
Omit “For the 2015‑16 income year, Company A (which is not a small business entity)”, substitute “For the 2017‑18 income year, Company A (which is not a base rate entity)”.
4 Subsection 36‑55(1) (example)
Omit “For the 2015‑16 income year, Company E (which is not a small business entity)”, substitute “For the 2017‑18 income year, Company E (which is not a base rate entity)”.
5 Subsection 36‑55(2) (example)
Omit “2002‑2003”, substitute “2017‑2018”.
6 Paragraph 65‑30(2)(a)
Omit “*small business entity”, substitute “base rate entity (within the meaning of the Income Tax Rates Act 1986)”.
7 Paragraph 65‑35(3A)(a)
8 Subsection 115‑280(3) (example)
Omit “A listed investment company (which is not a small business entity)”, substitute “A listed investment company (which is not a base rate entity)”.
Part 4—Amendments commencing 1 July 2024
17 Paragraph 65‑30(2)(a)
Omit “0.275”, substitute “0.27”.
18 Paragraph 65‑35(3A)(a)
Omit “27.5”, substitute “27”.
Part 5—Amendments commencing 1 July 2025
19 Paragraph 65‑30(2)(a)
Omit “0.27”, substitute “0.26”.
20 Paragraph 65‑35(3A)(a)
Omit “27”, substitute “26”.
Part 6—Amendments commencing 1 July 2026
21 Paragraph 65‑30(2)(a)
Omit “0.26”, substitute “0.25”.
22 Paragraph 65‑35(3A)(a)
Omit “26”, substitute “25”.
House of Representatives on 1 September 2016
Senate on 27 March 2017]
(88/16)