Delivering tax relief for small and medium businesses in FAIRFAX sooner

Delivering tax relief for small and medium businesses in FAIRFAX sooner - Ted O'Brien MP

****Update****

23/10/18 - Legislation has now passed Parliament, meaning that from 2021-22, a business with a turnover below $50 million will have a tax rate of just 25 per cent, five years earlier than planned. Similar timing changes will also apply to the roll out of the 16 per cent tax discount for unincorporated businesses. Fast tracking tax relief is part of teh Federal Government's plan for a stronger economy and will drive more investment, more jobs and higher wages and builds on the first stage of company tax relief that the Federal Government delivered in March 2017.

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11/10/18 - The Federal Government will deliver additional tax relief to over 40,000 small and medium businesses on the Sunshine Coast, five years earlier than planned.

“This is good news for small businesses here on the Coast - lower company tax means more investment, more jobs and higher wages,” Ted O’Brien MP said.

“We will introduce legislation during the next session of Parliament, fast-tracking our business tax relief for over 40,000 small and medium businesses on the Sunshine Coast.”

Across the country, this will provide tax relief for more than three million businesses that employ nearly seven million Australians.

This means businesses with a turnover below $50 million will face a tax rate of just 25 per cent in 2021-22 rather than from 2026-27 as currently legislated.  Similar timing changes will apply to the roll out of the 16 per cent tax discount for unincorporated businesses.

“By fast-tracking this tax relief for businesses, we will make a more immediate difference to the individual businesses and the people who work for them,” Mr O’Brien said.

“This means that a small business, such as an independent supermarket or a pub that makes $500,000 profit, will have an additional $7,500 in 2020-21 and $12,500 in 2021-22 to invest back into the business or staff, or help to manage cash flow.

This builds on the first stage of company tax relief that our Government delivered in May 2017.

“Our economic plan is delivering for Fairfax, and the fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of the Sunshine Coast and our nation.”