Business leaders welcome tax cuts as local economy reopens
FROM this week, nearly 19,000 small and family businesses in Wide Bay will pay less tax as a result of legislated tax cuts passed by the Morrison Government.
From July 1, incorporated small and family businesses with a turnover of less than $50 million will see their company tax rate reduced from 27.5 per cent to 26 per cent and unincorporated businesses will also benefit as the rate of the small business income tax offset increases from 8 per cent to 13 per cent.
The changes mark the next stage of the Morrison Government’s accelerated small business tax cuts, legislated in October 2018, which brought forward tax relief for small and medium businesses by five years.
South Burnett Chamber of Commerce and Industry president Damien Martoo said the region will need every little bit of help it can get.
“Every bit of tax relief for a small business will help and for businesses with a high turnover that 1.5 per cent could mean keeping someone’s job or spending money on other local businesses,” Mr Martoo said.
“We are still in the middle of a five year drought so to see tax cuts is very positive and will give small business owners that little bit of extra relief.
“The pubs and cafes in our region were hit hard and will continue to hurt, however thanks to the $150,000 tax write off available till December, these businesses will have a bit more flexibility down the track.”
Federal Member for Wide Bay Llew O’Brien said the changes were a big boost to the local economy.
“Our hardworking small and family business owners are a significant part of Wide Bay’s local economy, and bringing forward these tax cuts will provide an economic lift,” Mr O’Brien said.
“We know that small businesses are among the worst hit during the COVID-19 pandemic, so at a time they need it most, these tax cuts will lead to more investment, helping small business owners keep more of their money, and securing important local jobs.”
The Treasurer Josh Frydenberg said these legislated tax cuts would provide further support to small business during the COVID-19 crisis.
“The Coalition Government has delivered extensive support for small and medium-sized businesses during the COVID-19 crisis,” Mr Frydenberg said.
“We have extended the Instant Asset Write Off to $150,000 for another six months, are providing the Cash Flow Boost of up to $100,000 for employing small businesses, and are boosting access to capital through our COVID-19 SME Guarantee Scheme.
“This is in addition to the extensive income support Jobkeeper, Jobseeker, and our Supporting Apprentices & Trainees wage subsidy are providing to support small businesses and sole traders across Australia.”