Early tax cuts passed


pharmacist holding piggy bank

Fast-tracked tax relief for small and medium sized businesses passed Parliament today

Treasurer Josh Frydenberg and Minister for Small and Family Business, Skills and Vocational Education Michaela Cash announced that these businesses will pay less tax five years sooner.

“This is great news for the 3.3 million small and medium-sized businesses and the seven million Australians they employ,” they said.

“From 2021-22, a business with a turnover below $50 million will have a tax rate of just 25%, five years earlier than planned. Similar timing changes will also apply to the roll out of the 16% tax discount for unincorporated businesses.

“For example, 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.

“Fast-tracking tax relief is part of our plan for a stronger economy and will drive more investment, more jobs and higher wages and builds on the first stage of business tax relief that our Government delivered in May 2017.”

The Guild welcomed the move when it was announced last week, with executive director David Quilty saying the early tax cuts would help pharmacy owners invest in their businesses and employ staff with more certainty.

Tax cuts are as below.

Corporate18-1919-2020-2121-2222-2323-2424-2525-2626-27
Existing27.5%27.5%27.5%27.5%27.5%27.5%27%26%25%
Fast-tracked27.5%27.5%26%25%25%25%25%25%25%

 

Unincorporated18-1919-2020-2121-2222-2323-2424-2525-2626-27
Existing8%8%8%8%8%8%10%13%16%
Fast-tracked8%8%13%16%16%16%16%16%16%

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