Company taxation

• Overall


  Company taxation is the tax that companies must pay to the government on profits that they earn

  At present, the tax is levied at a flat rate of 30% and 28.5% for small businesses with an aggregate turnover of less than $2 million

  In order to be eligible for the lower tax, business has to have a turnover less than $50 million
• Australian government


  Australian government have undertaken process of reform of the federal tax system in order to improve their international competitiveness and make Australia a more attractive place to invest thereby driving long-term economic growth → more jobs , higher wages
• Influence + on financial management


  Influence: businesses must ensure financial records are maintained and up to date → reduce the expected returns of a business and business must pay the right amount of tax. Businesses must be aware of any tax deductions

  Influence on financial management → some decisions might be better for taxation purposes and require sound financial management so the business will have adequate financial resources available for when their taxation obligations are due