Further changes were made to the corporate tax rate for certain small companies. A corporate tax rate of 27.5% applies to certain small business corporate tax entities with an aggregated turnover of less than 50 million Australian dollars (AUD) for the 2018/19 and 2019/20 income years. The 27.5% rate for these entities will reduce to 26% for the 2020/21 income year and then to 25% from the 2021/22 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 by 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.
A Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TPP-11) between Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam has been ratified and will enter into force for Australia on 30 December 2018. See the Other taxes section for more information.
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) 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.