The reduce company tax rate of 27.5% in 2018 will be denied for companies with predominantly passive income. Under the changes, companies will qualify for the lower tax rate only if:
- their passive income is less than 80% of their assessable income for the year
- they “carry on a business” in that year; and
- they come below the aggregated turnover threshold for the year ($25 million for 2017–2018).