The corporate tax rate of 27.5% is extended from the 2017/18 income year to those small business corporate tax entities with an aggregated turnover of less than 25 million Australian dollars (AUD), and from the 2018/19 income year to those with an aggregated turnover of less than AUD 50 million. After the end of the 2023/24 income year, the 27.5% rate for these entities will reduce progressively to 25% by the 2026/27 income year. The corporate tax rate for all other corporate tax entities will remain at 30%. See the Taxes on corporate income section.
Accelerated depreciation applies to certain depreciating assets with a cost of up to AUD 20,000 acquired and installed ready for use between 12 May 2015 and 30 June 2019 for small business entities. See the Deductions section for more information.
From 1 July 2018, the Australian goods and services tax (GST) is payable on certain supplies of low value goods (valued at AUD 1,000 or less) that are purchased and imported by Australian consumers.
The Australian government has implemented the Organisation for Economic Co-operation and Development (OECD) hybrid mismatch rules, which will generally apply to income years commencing on or after 1 January 2019. See the Group taxation section for more information.
The Junior Minerals Exploration Incentive (JMEI) replaced the exploration development incentive (EDI) (which ceased to apply on 30 June 2017) and enables eligible minerals exploration companies to generate tax credits for new shareholders by giving up a portion of their tax losses from greenfield mineral exploration expenditure, which can then be distributed to shareholders. The scheme applies from 1 July 2017 until 30 June 2021, with total credits limited to AUD 100 million.
The non-final withholding tax (WHT) rate that applies to foreign residents that dispose of certain taxable Australian property increased to 12.5% from 1 July 2017. See Capital gains in the Income determination section for more information.
On 7 June 2017, Australia signed the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS) and has since implemented the convention and deposited its instrument of ratification with the OECD. This now means that the Convention will have effect from as early as 1 January 2019. See the Other issues section for more information.
Australia has implemented a levy (known as the Major Bank Levy) on Australian authorised deposit-taking institutions with total liabilities of greater than AUD 100 billion, with effect from 1 July 2017. See the Other taxes section for more information.