29 February 2016

Small Business Bill passes Parliament

Parliament has today passed the Small Business Restructure Roll-over Bill to allow small businesses to amend their legal structure without concurrently attracting a capital gains tax (CGT) liability, Minister for Small Business and Assistant Treasurer Kelly O’Dwyer said.

"Small businesses will now be able to restructure their business without incurring an immediate tax bill," Minister O’Dwyer said.

"The Coalition is providing the right tools for small business to grow their business and today’s legislation minimises complexity and risk.

"We have now passed all of the tax measures promised in the Government’s record $5.5 billion Growing Jobs and Small Business package in last year’s Budget.

"These new measures also complement the Government’s National Innovation and Science Agenda, which provide a range of incentives for innovative start-ups to reach their potential.

"The Government is reducing the burden of unnecessary red-tape on small businesses.

The Government’s 2015-16 Budget Growing Jobs and Small Business package includes:

  • tax cuts for all incorporated small businesses to 28.5%;
  • 5% tax discount for unincorporated small businesses;
  • cutting red tape on small business by simplifying the process for establishing and maintaining an employee share scheme;
  • immediate deductibility of all eligible assets costing less than $20,000; and
  • immediate deductibility of professional expenses for new small businesses.

"The Turnbull Government is creating the right conditions for Australian small businesses to grow and the passage of the Bill is another example of this," Minister O’Dwyer said.