Tax reform benefits pharmacy


Tax package will benefit community pharmacy, the Guild announced over the weekend

The Guild said the passage of the Federal Government’s Enterprise Tax Plan through the Senate, will deliver “immediate and tangible benefits to Australia’s 5,600 community pharmacy small businesses.

In particular, the cut to the small business tax rate will benefit all pharmacies with turnovers up to $10 million a year, it says.”The median community pharmacy turnover is around $3 million a year.

“The median community pharmacy turnover is around $3 million a year.Incorporated pharmacies with turnovers of $2 million or less will have their tax rate reduced from 28.5c to 27.5c from this financial year.

Incorporated pharmacies with turnovers of $2 million or less will have their tax rate reduced from 28.5c to 27.5c from this financial year.Pharmacies with turnovers between $2 million and $10 million a year will have their tax rate reduced from 30c to 27.5c from this financial year.

Pharmacies with turnovers between $2 million and $10 million a year will have their tax rate reduced from 30c to 27.5c from this financial year.”The small number of pharmacies with turnover above $10 million but less than $50 million will have their tax rate reduced to 27.5c from 2018-19.

“The small number of pharmacies with turnover above $10 million but less than $50 million will have their tax rate reduced to 27.5c from 2018-19.Many community pharmacies are unincorporated. For these small businesses with turnover up to $5 million, the tax discount on unincorporated business income will be raised from 5% to 8% with a cap of $1,000 per individual. This helps to ensure that these unincorporated small businesses do not miss out on the benefits of the small business tax cuts.

Many community pharmacies are unincorporated. For these small businesses with turnover up to $5 million, the tax discount on unincorporated business income will be raised from 5% to 8% with a cap of $1,000 per individual. This helps to ensure that these unincorporated small businesses do not miss out on the benefits of the small business tax cuts.”Finally, the increase in the turnover threshold definition for small businesses from $2 million to $10 million means more community pharmacies will benefit from a range of tax and related benefits that apply to small businesses.

“Finally, the increase in the turnover threshold definition for small businesses from $2 million to $10 million means more community pharmacies will benefit from a range of tax and related benefits that apply to small businesses.This includes the simplified depreciation arrangements, which include immediate tax deductibility of asset purchases up to $20,000 before 30 June 2017.

This includes the simplified depreciation arrangements, which include immediate tax deductibility of asset purchases up to $20,000 before 30 June 2017.The Guild’s executive director David Quilty, said these tax changes would be welcomed by community pharmacies in a difficult trading environment.

The Guild’s executive director David Quilty, said these tax changes would be welcomed by community pharmacies in a difficult trading environment.”Currently, pharmacies are facing the triple whammy of heavy discounting, major reductions in PBS medicine prices, and flat prescription volumes,” Mr Quilty said.

“Currently, pharmacies are facing the triple whammy of heavy discounting, major reductions in PBS medicine prices, and flat prescription volumes,” Mr Quilty said.”News of this tax relief will be seen as recognition of the vital role of these small businesses in their communities, employing local staff and meeting the health needs of their patients.” Mr Quilty said.

“News of this tax relief will be seen as recognition of the vital role of these small businesses in their communities, employing local staff and meeting the health needs of their patients.” Mr Quilty said.

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