AUSTRALIA’S 3.1 million small and medium sized businesses ? including the 19,670 located in the Leichhardt electorate ? will pay less tax under the Coalition Government’s Ten Year Enterprise Tax Plan passed in Parliament last week.
“Reducing the tax burden on small business gives the Far North’s small business owners the chance to grow, to hire more locals and pay them more,” Leichhardt MP Warren Entsch said.
“This will benefit our community because when taxes are lower for small businesses, that money is reinvested in expanding a business, hiring more people, giving them more hours of work or paying them more – not put in a business’ back pocket.”
Under our plan, Far Northern businesses with turnovers up to $10 million are now defined as small businesses and will pay a lower company tax rate of 27.5 per cent from this financial year, before eventually falling to 25 per cent.
Mr Entsch said the 27.5 per cent company tax rate delivers the lowest tax rate for small business in 50 years. Cutting the company tax rate and broadening the definition of small business also means more local small businesses can now access the instant asset write-off program.
“The Government’s Enterprise Tax Plan means more small businesses can instantly write-off new equipment worth up to $20,000 and claim it back straight away,” Mr Entsch explained.
“Anything from a stainless steel servery to photocopiers, computers or coffee machines can now be bought and claimed back against tax, freeing up cash flow for local small businesses, thanks to our changes.
“We believe in practical support for small business and have delivered in spades again this week.”
Small Business Minister Michael McCormack said the small business tax cut, simpler paperwork and greater support for small business are designed to take the pressure off small business, to help the sector grow and create local jobs.
“Cutting small business taxes has always been top of the Government’s agenda and I am delighted we have delivered the lowest tax rate since 1967,” Mr McCormack said. “Small business already makes up more than 97 per cent of businesses in Australia and employs more than 5.5 million Australians but we want to see this number grow.
“The Government understands delivering lower company taxes means more Australians can start a small business, have a go and create jobs.”