Regulation Impact Statement – The Treasury
As part of the 2015-16 Budget, the Treasurer announced a tax cut for small businesses. The corporate tax rate for small companies with annual turnover of less than $2 million will be reduced from 30 per cent to 28.5 per cent. The tax cut applies from 1 July 2015. The tax cut is intended to improve small business cash flows, assist them to grow and more effectively compete with larger businesses. A Regulation Impact Statement (RIS) was prepared and certified by the Treasury under the Australian Government’s best practice regulation requirements, and has been assessed as compliant and consistent with best practice by the Office of Best Practice Regulation (OBPR). The RIS estimates that the measure will increase regulatory costs on small businesses by $3.2 million a year due to system changes for taxpayers and their tax agents. The OBPR has agreed to this estimate of regulatory costs.