Today I release draft legislation to cut company tax to help Australian businesses right across the economy - including the many businesses that are not in the mining boom fast lane and face challenges such as those flowing from a higher dollar.
The draft legislation cuts the company tax rate for all companies from 30 per cent to 29 per cent for the 2013‑14 income year and subsequent income years.
The Government recognises that many small businesses are under extra pressure and so the draft legislation provides a head-start for small business, with the 29 per cent rate applying from 2012‑13. This will help up to 720,000 small business companies by allowing them to reinvest more of their profits to grow their businesses and employ more Australians.
Cutting the company tax rate will increase productivity, promote broad-based economic growth and encourage more investment and jobs across Australia's entire economy.
The reduction in the company tax rate is funded by super-profitable mining companies through the Minerals Resource Rent Tax. It is one of the ways the Gillard Government is spreading the benefits of the nation's mineral wealth.
The draft legislation is available on the Treasury website .