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Schedule 1—Reducing the corporate tax rate

Schedule 1 Reducing the corporate tax rate

Part 1 Amendments commencing 1 July 2019

Income Tax Rates Act 1986

1  Paragraph 23AA(b)

Omit “$50 million”, substitute “$100 million”.

Part 2 Amendments commencing 1 July 2020

Income Tax Rates Act 1986

2  Paragraph 23AA(b)

Omit “$100 million”, substitute “$250 million”.

Part 3 Amendments commencing 1 July 2021

Income Tax Rates Act 1986

3  Paragraph 23AA(b)

Omit “$250 million”, substitute “$500 million”.

Part 4 Amendments commencing 1 July 2022

Income Tax Rates Act 1986

4  Paragraph 23AA(b)

Omit “$500 million”, substitute “$1 billion”.

Part 5 Amendments commencing 1 July 2023

Income Tax Rates Act 1986

5  Subsection 3(1) (definition of base rate entity )

Repeal the definition.

6  Subsection 12(10)

Omit “30%”, substitute “27.5%”.

7  Subsection 23(2)

Repeal the subsection, substitute:

             (2)  The rate of tax in respect of the taxable income of a company is 27.5%, if subsections (3) to (5) and section 23A do not apply to the company.

8  Paragraph 23(3)(b)

Repeal the paragraph, substitute:

                     (b)  in respect of the standard component—27.5%.

9  Paragraph 23(4)(c)

Repeal the paragraph, substitute:

                     (c)  in respect of so much of the taxable income as exceeds the PDF component—27.5%.

10  Paragraph 23(6)(b)

Repeal the paragraph, substitute:

                     (b)  the taxable income is not greater than $832.

11  Subsection 23(7)

Repeal the subsection, substitute:

             (7)  The amount of tax payable by a company (before applying any rebate, credit or other tax offset (within the meaning of the Income Tax Assessment Act 1997 )) must not be greater than 41.25% of the amount by which the taxable income of the company exceeds $49,999, if the company is a recognised medium credit union in relation to the year of income.

12  Section 23AA

Repeal the section.

13  Paragraph 23A(a)

Omit “30%”, substitute “27.5%”.

14  Section 25

Repeal the section, substitute:

25   Rate of tax payable by trustees of public trading trusts

                   The rate of tax payable by a trustee of a public trading trust in respect of the net income of the public trading trust in respect of which the trustee is liable, under section 102S of the Assessment Act, to be assessed and to pay tax is 27.5%.

15  Paragraph 28(a)

Repeal the paragraph, substitute:

                     (a)  if paragraph 98(3)(b) of the Assessment Act (about beneficiaries that are companies) applies—the rate specified in subsection 23(2) of this Act; and

16  Paragraph 28A(a)

Omit “paragraph 23(2)(b)”, substitute “subsection 23(2)”.

Part 6 Amendments commencing 1 July 2024

Income Tax Rates Act 1986

17  Subsection 12(10)

Omit “27.5%”, substitute “27%”.

18  Subsection 23(2)

Omit “27.5%”, substitute “27%”.

19  Paragraph 23(3)(b)

Omit “27.5%”, substitute “27%”.

20  Paragraph 23(4)(c)

Omit “27.5%”, substitute “27%”.

21  Paragraph 23(6)(b)

Omit “$832”, substitute “$817”.

22  Subsection 23(7)

Omit “41.25%”, substitute “40.5%”.

23  Paragraph 23A(a)

Omit “27.5%”, substitute “27%”.

24  Section 25

Omit “27.5%”, substitute “27%”.

Part 7 Amendments commencing 1 July 2025

Income Tax Rates Act 1986

25  Subsection 12(10)

Omit “27%”, substitute “26%”.

26  Subsection 23(2)

Omit “27%”, substitute “26%”.

27  Paragraph 23(3)(b)

Omit “27%”, substitute “26%”.

28  Paragraph 23(4)(c)

Omit “27%”, substitute “26%”.

29  Paragraph 23(6)(b)

Omit “$817”, substitute “$788”.

30  Subsection 23(7)

Omit “40.5%”, substitute “39%”.

31  Paragraph 23A(a)

Omit “27%”, substitute “26%”.

32  Section 25

Omit “27%”, substitute “26%”.

Part 8 Amendments commencing 1 July 2026

Income Tax Rates Act 1986

33  Subsection 12(10)

Omit “26%”, substitute “25%”.

34  Subsection 23(2)

Omit “26%”, substitute “25%”.

35  Paragraph 23(3)(b)

Omit “26%”, substitute “25%”.

36  Paragraph 23(4)(c)

Omit “26%”, substitute “25%”.

37  Paragraph 23(6)(b)

Omit “$788”, substitute “$762”.

38  Subsection 23(7)

Omit “39%”, substitute “37.5%”.

39  Paragraph 23A(a)

Omit “26%”, substitute “25%”.

40  Section 25

Omit “26%”, substitute “25%”.

Part 9 Application of amendments

41  Application of amendments

(1)       Subject to the following subitems, the amendments made by Part 1 of this Schedule apply to the 2019-20 year of income and later years of income.

(2)       Subject to the following subitems, the amendments made by Part 2 of this Schedule apply to the 2020-21 year of income and later years of income.

(3)       Subject to the following subitems, the amendments made by Part 3 of this Schedule apply to the 2021-22 year of income and later years of income.

(4)       Subject to the following subitems, the amendments made by Part 4 of this Schedule apply to the 2022-23 year of income and later years of income.

(5)       Subject to the following subitems, the amendments made by Part 5 of this Schedule apply to the 2023-24 year of income and later years of income.

(6)       Subject to the following subitems, the amendments made by Part 6 of this Schedule apply to the 2024-25 year of income and later years of income.

(7)       Subject to the following subitem, the amendments made by Part 7 of this Schedule apply to the 2025-26 year of income and later years of income.

(8)       The amendments made by Part 8 of this Schedule apply to the 2026-27 year of income and later years of income.