The Federal Member for Aston, Hon Alan Tudge MP welcomed the passage of legislation in Federal Parliament which will cut taxes to over 10,000 small businesses in Knox.
The legislation will cut the company tax rate to 27.5% this financial year for businesses with turnovers up to $10m. All small businesses will be able to access the following:
- An instant asset write-off for new equipment up to $20,000. This measure ends on 30 June 2017, so companies are urged to take advantage of it now.
- Simplified trading stock rules, with the option to avoid end of year stocktake if the value of their stock has changed by less than $5,000.
- A simplified method of paying PAYG instalments calculated by the ATO, removing the risk of under or overestimating PAYG instalments and resulting penalties that may be applied.
- An option to account for GST on a cash basis and pay GST instalments as calculated by the ATO.
- Other tax concessions currently available to small businesses, such as Fringe Benefits Tax (FBT) exemptions.
- Simpler Business Activity Statements (BAS) reducing GST compliance costs from 1 July 2017.
For businesses that are not incorporated, the Government is extending an increased unincorporated small business tax discount of 8% to businesses with annual turnovers of up to $5m.
Mr Tudge said small businesses in Knox will have the lowest company tax rate for public and private companies since 1967, helping local small businesses to be more competitive in global markets.
“Small business is at the heart of Knox. When they do well, everyone does well.”
The tax cuts for small businesses are part of the Coalition’s broader plan to boost employment. New measures will focus on making job seekers more employable, reducing the costs of taking on new staff, and bringing job seekers and job providers together through a Federal PaTH (prepare-trial-hire) programme.
There will be an additional $1.2 billion pool for wage subsidies to support employers to provide job opportunities and assist job seekers into work.
More information on the Growing Jobs and Small Business Package can be found on Mr Tudge’s website.
More information on the cuts to small business can be found on the 2016-17 Budget website.