Here are the top 4 tax changes you need to make if you run a small business
It’s the beginning of the new financial year and a raft of tax changes have arrived as of the first of the month – if you run a small business, it’s up to you to be across these changes, writes Chartered Accountants Australia and New Zealand (CA ANZ) Senior Tax Advocate, Susan Franks.
4. Reduced company tax rate for active small businesses.
That company tax rate for active small businesses will decrease from 27.5% to 26% in the 2020/21 year and to 25% in the 2021/22 year. Along with the decreased tax rates there will be decreased franking rates. It is time to consider the impact of these changes on your small business’s ability to access existing franking credits through future dividend payments.
“Regulations are increasingly changing, so make sure you discuss these with your chartered accountant and ensure you are compliant with all changes required,” says Franks.
This post was written by Susan Franks for Kochie’s Business Builders and is republished here with permission.