Income Tax Point-in-Time Service Updates

The Income Tax Point-in-Time Service has been updated to include the Civil Law and Justice Legislation Amendment Act 2018 (Cth) (Act 130 of 2018) and the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Act 2018 (Cth) (Act 134 of 2018).

Act 130 of 2018

The purpose of the Civil Law and Justice Legislation Amendment Act 2018 is to make minor and technical amendments to civil justice legislation. This would improve the operation and clarity of civil justice legislation administered by the Attorney-General.  

Act 134 of 2018

Schedule 1 to the Act amends the Enterprise Tax Plan Act to accelerate the reduction of the corporate tax rate for corporate tax entities that are base rate entities — that is, corporate tax entities that derive no more than 80 per cent of their income in passive forms and have an aggregated turnover of less than $50 million. The corporate tax rate for base rate entities will be reduced from 27.5 per cent to 26 per cent in 2020-21 before being cut to 25 per cent for the 2021-22 income year and later income years.

Schedule 2 to the Act amends the Enterprise Tax Plan Act to increase the small business income tax offset rate to 13 per cent of an eligible individual’s basic income tax liability that relates to their total net small business income for the 2020-21 income year. The small business income tax offset rate will then be increased to 16 per cent for the 2021-22 income year and later income years. The small business income tax offset continues to be capped at $1,000 per individual per year.

The amendments made by these Acts have been updated in the Point-in-Time Income Tax Service current to 19 November 2018. (NB: subscription required).

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