TAX ALERT - NEW PASSIVE INCOME TEST TO ACCESS THE REDUCED CORPORATE TAX RATE
On 18 October 2017, the Government introduced the Treasury Laws Amendment (Enterprise Tax Plan Base Rate Entities) Bill 2017. This Bill proposes that corporate entities with no more than 80% passive income will be eligible for the lower corporate tax rate.
Provided the Bill passes both houses of Parliament, it will apply prospectively from the 2017-18 income year, commencing on 1 July 2017.