Australia’s 3.2 million small and medium businesses – including the 29,340 small and medium sized businesses in Wentworth – will pay less tax under the Government’s Ten Year Enterprise Tax Plan passed in Parliament last week.
Prime Minister Malcolm Turnbull said this is important to small business owners because reducing their tax burden will give them the chance to grow, to hire more locals and pay them higher wages.
“Under our plan, Wentworth businesses with turnovers of up to $10 million are now defined as small businesses and, if they are incorporated, will pay a lower company tax rate of 27.5 per cent from this financial year, before eventually falling to 25 per cent,” Mr Turnbull said.
Small businesses that are unincorporated will also benefit. The unincorporated tax discount will increase from 5 per cent to 8 per cent, capped at $1,000, for businesses with annual turnover less than $5 million. The tax discount will increase to 16 per cent over the next decade.
Cutting the company tax rate and broadening the definition of small business also means more small businesses in Wentworth can now access the instant asset write-off program to claim back equipment worth up to $20,000.
Small Business Minister Michael McCormack said we have delivered the lowest tax rate since 1967.
“The Government understands delivering lower company taxes means more Australians can start a small business, have a go and create jobs.”