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Business Tax Rates

Small Business Tax

Below is a range of useful tax rates for small and medium sized businesses. Included are individual marginal tax rates, company tax rates, reasonable domestic and overseas travel claim allowances, PAYG withholding calculator, fringe benefits (FBT) car calculator, motor vehicle kilometre rates, concessional and non-concessional superannuation contributions limits, plus other superannuation and GST thresholds.

Click on your selection:

Resident Individual Tax Rates
Reasonable Travel Allowance Claims for Domestic & Overseas Travel
Goods Taken from Stock for Private Use by Business Owners 
Company Tax Rates
PAYG Withholding Calculator
Motor Vehicle Depreciation Cost-Limit
Per Kilometre Motor Vehicle Rates
Taxation of Complying Superannuation Funds
Concessional Superannuation Contribution Limits 
Other Superannuation Thresholds for 2017/18 
GST Thresholds

Resident Individual Tax Rates - 2018/19, 2019/20, 2020/21, 2021/22 years

 

TAXABLE INCOME

TAX ON THIS INCOME

$0 – $18,200

Nil

$18,201 – $37,000

19c for each $1 over $18,200

$37,001 – $90,000

$3,572 plus 32.5c for each $1 over $37,000

$90,001 – $180,000

$20,797 plus 37c for each $1 over $90,000

Over $180,000

$54,097 plus 45c for each $1 over $180,000

Compulsory superannuation rate: 9.5%

Notes on tax rates

- Taxable income includes capital gains.

- Medicare levy is imposed at the rate of 2% of taxable income is not included.

- Resident individuals are entitled to a refund of imputation credits that exceed the primary tax payable.

- Resident individuals are entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

- Includes the new Low and middle income tax offset (LMITO) applying from the 2018/19 year as follows:

  • The low and middle income tax offset increases from a maximum amount of $530 to $1,080 per annum and the base amount increases from $200 to $255 per annum.
  • Taxpayers with a taxable income:
    • of $37,000 or below can now receive a low and middle income tax offset of up to $255.
    • above $37,000 and below $48,000 can now receive $255, plus an amount equal to 7.5% to the maximum offset of $1,080.
    • above $48,000 and below $90,000 are now eligible for the maximum low and middle income tax offset of $1,080.
    • above $90,000 but is no more than $126,000 are now eligible for a low and middle income tax offset of $1,080, less an amount equal to three per cent of the excess.

Reasonable Travel Allowance Claims for Domestic & Overseas Travel

Where an employee, company director, or office holder receives an allowance for travel costs within or outside Australia and the person makes a claim for the costs of accommodation, food, drink and incidental expenses up to certain limits, then the person is not required to keep written evidence (i.e. receipts) of the expenses. These deduction limits are based on the salary of the person and the destination of the trip.

The travel must be for business purposes and the person must be sleeping away from home. Note this concession does not apply to self employed persons, including partners in a partnership.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2018/19.

Click here and then scroll down to access the reasonable travel allowance claims within Australia for 2017/18.

Goods Taken from Stock for Private Use by Business Owners

The ATO each year issues a Determination which outlines the amounts that are acceptable as estimates of the value of goods taken from trading stock for private use by business owners (including their associates) in certain industries who operate as sole traders or in partnership. The relevant amounts need to be included in the assessable income of the individual for the year.

Note that an adjustment for the GST credits claimed in relation to these amounts also needs to be made.

Fringe benefits tax and a different set of valuation rules apply where the business owner is employed through a company or family trust.

Click here and then scroll down to access the acceptable amounts for 2018/19.

Click here and then scroll down to access the acceptable amounts for 2017/18.

Company Tax Rates

The standard company tax rate is 30%. However from the 2015/16 year onwards, this rate will be progessively reduced based on turnover and other tests as follows:

Income Year

Applicable Turnover Threshold
($)

Company Tax Rate
(%)

2015-16

2 million

28.5

2016-17

10 million

27.5

2017-18

25 million

27.5

2018-19

50 million

27.5

2019-20

50 million

27.5

2020-21

50 million

27.5

2021-22

50 million

27.5

2022-23

50 million

27.5

2023-24

50 million

27.5

2024-25

50 million

27

2025-26

50 million

26

2026-27

50 million

25

Notes

Companies are required to maintain a franking account on a tax paid basis and are not entitled to a refund of imputation credits that exceed the tax payable.

Companies are not entitled to the 50% discount on the disposal of assets that are held for at least 12 months.

PAYG Withholding Calculator

This calculator is provided by the Australian Taxation Office and determines the PAYG Withholding for an employee who is paid either weekly, fortnightly or monthly.

Click here to access the calculator.

Motor Vehicle Depreciation Cost-Limit

Since 1980, the depreciation deduction for cars has been limited by a deemed maximum cost price depending on the year in which the car was acquired.

Income Year

Depreciation Cost Limit
$

2012

57,466

2013

57,466

2014

57,466

2015

57,466

2016

57,466

2017

57,581

2018

57,581

2019

57,581

2020

57,581

Per Kilometre Motor Vehicle Rates

These rates are used by individuals when making a claim for motor vehicle expenses up to a maximum of 5,000 business kilometres. They are also used by employers when reimbursing employees for business use of their vehicles.

The rates are based on the engine size of the car and are as follows:

Engine Capacity
(non-rotary engine)

Engine capacity
(rotary engine)

Rate per Kilometre (cents)

2009/10 year

2010/11 year

2011/12 year

2012/13 year

2013/14 year

2014/15 year

Up to 1,600cc

Up to 800cc

63

63

63

63

65

65

1,601 to 2,600cc

801 to 1,300cc

74

74

74

74

76

76

Over 2,600cc

Over 1,300cc

75

75

75

75

77

77

The above three rates have been replaced with a single rate commencing with the 2015/16 year as follows: 

2016/16 Year:    66 cents per kilometre

2016/17 Year:    66 cents per kilometre

2017/18 Year:    66 cents per kilometre 

2018/19 Year:    68 cents per kilometre

Taxation of Complying Superannuation Funds

Superannuation funds are taxed a rate of 15% on taxable income which includes employer contributions and the deductible portion of self employed contributions. Funds are entitled to a one-third discount on the disposal of assets that are held for at least 12 months and are also entitled to a refund of imputation credits that exceed the tax payable.

Income tax is not payable by the fund on income and capital gains where pensions are paid to the members.

The following changes apply from 1 July 2017:

- the tax exemption for assets supporting a transition to retirement income stream (TRIS) has been removed. This change applies irrespective of when the TRIS commenced.

- there is a $1.6 million cap on the amount of superannuation benefits that an individual can have in pension phase which is not subject to tax. The excess over this amount will need to be withdrawn by the member or maintained in an accumulation phase account where earnings are taxed at the rate of 15%.  

Concessional Superannuation Contribution Limits

The following contribution limits have applied since 1 July 2017:  

- A single annual concessional contributions cap of $25,000 applies to all individuals.

- Individuals under age 75 are entitled to claim a tax deduction for personal superannuation contributions, subject to meeting the work test upon attaining the age of 65. 

- the threshold at which high income earners pay additional contributions tax of 15% is $250,000.

- the annual non-concessional (after-tax) contribution cap is $100,000 per year, and $300,000 under the 3 year bring-forward rule.

Unused Concessional Cap Carry Forward

From 1 July 2018 if you have a total superannuation balance of less than $500,000 on 30 June of the previous financial year, you may be entitled to contribute more than the general concessional contributions cap and make additional concessional contributions for any unused amounts.

The first year you will be entitled to carry forward unused amounts is the 2019–20 financial year. Unused amounts are available for a maximum of five years, and after this period will expire.

Other Superannuation Thresholds for the 2019/20 Year

  • Super guarantee (SG) rate - remains at 9.5% of ordinary times earnings. The next rate rise is due on 1 July 2021 where it will increase to 10% as part of the Government’s initiative to increase the SG rate to 12% by 2025.
  • Capital Gains Small Business contributions cap – increased to $1,515,000 from $1,480. The CGT cap amount is the lifetime super contribution limit for proceeds from the disposal of eligible small business assets.
  • Low rate tax cap – increased to $210,000 from $205,000. The low rate cap is the lump sum amount that can be withdrawn tax-free over a lifetime for people that have reached their preservation age, but are not yet 60.
  • Maximum super guarantee contributions base – increased to $55,270 from $54,030. per quarter. Employers don’t have to provide the minimum super support for the part of earnings above this limit.
  • Government Co-Contribution lower income threshold – increased to $38,564 from $37,697. This is the threshold above which the maximum co-contribution amount of $500 begins to taper.
  • Government Co-Contribution higher income threshold – increased to $53,564 from $52,697. This is the threshold above which the co-contribution will not be paid.

GST Thresholds

Item

* Threshold

Requirement to issue a tax invoice

$75

No requirement to withhold if supplier does not quote ABN

$75

Turnover for compulsory registration for GST

$75,000
(for any 12 months)

Turnover for compulsory registration for GST (non-profit entity)

$150,000
(for any 12 months)

Annual turnover for compulsory use of non-cash accounting

$10,000,000

Annual turnover for compulsory monthly electronic BAS lodgement

$20,000,000

* all amounts are GST exclusive

 

Disclaimer

This information is provided as a guide only and is not intended to constitute professional advice. You should obtain appropriate advice concerning your particular circumstances.

Australianbiz and its representatives disclaim all liability for any loss or damage to any person or organisation, whether a user of this site or not, for the consequences of anything done or omitted to be done by any such person relying on this information.

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