As promised, the Turnbull Government has successfully fully delivered the first phase of much-needed tax cuts for small and medium businesses.
More than 3.2 million businesses across Australia, including 24,420 in Higgins, will benefit, including 6.5 million Australians employed in these businesses – more than half of our nation’s workforce.
The tax cuts will give businesses the confidence to invest more, employ more staff and pay higher wages.
Nationally, the tax cuts will put $5.2 billion back into the hands of small and medium sized businesses.
Companies with a turnover of less than $10 million a year will receive a reduction in their tax rate to 27.5% this financial year. We have also extended small business tax concessions, like the $20,000 instant asset write off and simpler BAS reporting, to all businesses with turnover less than $10 million.
All incorporated small and medium businesses with turnovers of less than $50 million a year will get a tax cut to 27.5% over the next three years.
Once fully implemented, our tax policy will permanently increase the size of the economy by 1.2 per cent of GDP – that’s more than $17 billion in today’s dollars every single year.
The Government has also recently taken further action to make sure multinational companies pay their fair share of tax, ensuring the tax paid by small and medium enterprises is as low as possible. Read more about our new Diverted Profits Tax here.
The Turnbull Government is working hard to provide the right conditions for business investment. We know that this is what Australia needs in order to grow jobs, support wage growth and maintain our standard of living in an increasingly globally competitive world.
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