Reduce the company tax rate from 30% to 25% over time, beginning with the
smallest businesses and gradually introducing tax cuts to bigger companies.
It will reduce the tax take by $65 billion over 10 years.
Since announcing this in 2016, the government has only got some of the way
there. Businesses with a turnover less than $25 million will have a 27.5%
rate in 2017–18, and on 1 July that threshold will increase to $50 million.
The tax rate for these companies will gradually decrease as planned.
However, there isn't enough support in the Senate for extending the tax
cuts to bigger businesses, so for now this plan has stalled.
Officially known as a Diverted Profits Tax, this imposes a 40% tax rate on
big multinationals who seek to avoid paying their fair share of tax in
Another 2016 budget item, this tax came into effect in July 2017. It's
expected to raise $100 million a year.
Increase penalties for dodgy businesses
Bring the penalties in the Australian Consumer Law into line with those in
the Competition and Consumer Act, and make sure that the fines you pay for
ripping off your customers can't be factored in as the cost of doing
For companies, the maximum penalty will be $10 million or three times the
benefit received from breaking the law or, if the value of the benefit
can't be determined, 10% of the previous 12 months' revenue.
Set to come into effect on 1 July 2018, the bill is still in the lower
Raise $6.2 billion over four years by levelling a tax of 0.015% of the
liabilities of all banks with liabilities over $100 billion – that is, the
big four banks.
Unsurprisingly, it sailed through Parliament and became law in July 2017,
less than two months after being introduced.