Tax relief five years earlier for small and medium-sized businesses
November 9, 2018
The Morrison Government is getting on with the job of bring forward tax relief for 3.3 million small and medium-sized businesses across Australia, with new laws fast-tracking tax relief for the sector passing Parliament this month.
The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 will fast-track tax relief for small and medium businesses five years earlier than planned.
In a sector of our economy that employs around seven million Australians, this will mean more investment, more jobs, and higher wages.
Under the new legislation, a business with a turnover below $50 million will have a tax rate of just 25 per cent in 2021-22, rather than from 2026-27 as currently legislated.
Similar timing changes will also apply to the roll out of the 16 per cent tax discount for unincorporated businesses.
This means that a small business such as a café that makes $100,000 profit will have an additional $1,500 in 2020-21 and $2,500 in 2021-22 or an independent supermarket with a $500,000 profit will have an additional $7,500 and $12,500 over the same time period.
Member for Durack, Melissa Price, said that these tax cuts were evidence the government understood what business owners needed to invest and employ more.
“Even Bill Shorten agrees that these tax cuts are needed, and is supporting the Morrison Government’s plan to bring them forward by five years," Ms Price said.
“Small business is the engine room of this nation’s economy and I am proud to vote in favour of bringing forward these tax cuts.”
Under the economic stewardship of the Coalition, the economy has grown at 3.4 per cent through the year, the best since the mining boom, and more than a million jobs have been created, as promised.