Parliament fast-tracks 5% tax cut for small to medium-sized enterprises
The federal government has passed updated legislation to reduce taxes for small to medium-sized enterprises (SMEs) from 30% to 25% over a three-year period, reports MyBusiness.
The Morrison government has fast-tracked the cuts, which were originally planned by the Turnbull government to be rolled out over the next eight years. Independent booksellers and other SMEs with annual revenues of up to $10 million can expect tax rates to drop down to 25% by 2021-22, five years earlier than the original plan.
Over three million SMEs and seven million employees are expected to benefit from the fast-tracked cuts. For example, a business with a profit of $300,000 can expect to save $7500 in tax from 2021-22. The plan will cost the government $3.2 billion, which will be partially offset by the $1.3 billion saved after the Senate rejected plans to reduce tax rates for large businesses earlier this year.
Federal treasurer Josh Frydenberg and small business minister Michaelia Cash said in a joint statement: ‘Businesses will keep more of their own money—that’s money they can invest back into their business, to create jobs, to boost their productivity and grow.’
Category: Local news