The Morrison Government has announced that it will deliver tax relief for small and medium sized businesses five years earlier than planned
Prime Minister Scott Morrison and Treasurer Josh Frydenberg say that millions of small and medium businesses will benefit from the move.
“We will introduce legislation during the next session of Parliament, fast-tracking our business tax relief for more than three million businesses that employ nearly seven million Australians,” the two said in a joint statement.
“This means businesses with a turnover below $50 million will face a tax rate of just 25% in 2021-22 rather than from 2026-27 as currently legislated.
“Similar timing changes will apply to the roll out of the 16 per cent tax discount for unincorporated businesses.
“This means that a small business, such as an independent supermarket or a pub, that makes $500,000 profit, will have an additional $7,500 in 2020-21 and $12,500 in 2021-22 to invest back into the business or staff, or help to manage cash flow.”
They say that the early tax cut will result in more investment and jobs as well as higher wages.
“This change will help to ensure Australian businesses are competitive, to protect our economy and jobs.”
The move builds on the first stage of company tax relief delivered by the Coalition Government in May 2017.
The Guild welcomed the announcement.
Its Executive Director, David Quilty, said the earlier tax cuts will benefit community pharmacy small businesses across Australia, allowing them to invest in the business and employ staff with more certainty.
“In a tough trading environment it is pleasing to see the Government recognise the importance of maintaining the viability of small businesses such as community pharmacies,” Mr Quilty said.
“They employ thousands of Australians and deliver a vital service within our health system and in local communities.
“We would certainly hope to see the legislation enabling the bringing forward of the tax cuts passed through the Parliament at the earliest opportunity,” he said.
Projected tax cuts are as below.