The Federal Government will deliver on its tax relief package five years ahead of schedule, with Treasurer Josh Frydenberg announcing that the Coalition will introduce legislation during the next session of Parliament that will fast-track business tax relief for more than three million businesses.
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, Frydenberg said, while similar timing changes will apply to the rollout of the 16 per cent tax discount for unincorporated businesses.
“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,” he said.
Frydenberg said this package builds on the first stage of company tax relief that the Government delivered in May 2017 and that this change will help to ensure Australian businesses are competitive.
“Our economic plan is working and the fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of our nation,” he said.