From this week, nearly 19,000 small and family businesses in Wide Bay will pay less tax as a result of legislated tax cuts passed by the Morrison Government.
From July 1, incorporated small and family businesses with a turnover of less than $50 million will see their company tax rate reduced from 27.5% to 26%, and unincorporated businesses will also benefit as the rate of the small business income tax offset increases from 8% to 13%.
The changes mark the next stage of the Morrison Government’s accelerated small business tax cuts, legislated in October 2018, which brought forward tax relief for small and medium businesses by five years.
Federal Member for Wide Bay Llew O’Brien welcomed the Morrison Government’s latest show of support for small businesses.
“Our hardworking small and family business owners are a significant part of Wide Bay’s local economy, and bringing forward these tax cuts will provide an economic lift,” Mr O’Brien said.
“We know that small businesses are among the worst-hit during the COVID-19 pandemic, so at a time they need it most, these tax cuts will lead to more investment, helping small business owners keep more of their money, and securing important local jobs.”
Minister for Employment, Skills, Small and Family Business Michaelia Cash said this was a big win for the small business sector.
“Small businesses are the backbone of our economy. We have around 3.5 million small businesses across the country. They are a vital part of our COVID-19 recovery,” Minister Cash said.
“As COVID-19 health restrictions ease and the economy re-opens, this tax relief will support Australian small and family businesses to bounce back stronger and get to the other side of this crisis.”
The Treasurer Josh Frydenberg said these legislated tax cuts would provide further support to small business during the COVID-19 crisis.
“The Coalition Government has delivered extensive support for small and medium-sized businesses during the COVID-19 crisis,” Mr Frydenberg said.
“We have extended the Instant Asset Write Off to $150,000 for another six months, are providing the Cash Flow Boost of up to $100,000 for employing small businesses, and are boosting access to capital through our COVID-19 SME Guarantee Scheme.
“This is in addition to the extensive income support JobKeeper, JobSeeker, and our Supporting Apprentices & Trainees wage subsidy are providing to support small businesses and sole traders across Australia.”