Small Business Tax Rate Reductions
Tax cuts for small business have been accelerated and will drop to 26% in 2020-2021 from 27.5% currently. It will then drop a further 1% to 25% in 2021-2022. Of course, there are eligibility requirements to qualify for these tax cuts. In order to qualify a business needs to be a ‘Base Rate Entity’ (BRE) which means companies with an aggregated turnover of up to $50 million. Additionally no more than 80% of the income can be passive in nature. Put simply passive income is thin