Lower taxes and simpler paperwork for small business was central as a nationwide small business roadshow stopped in Corangamite today, Federal Small Business Minister Michael McCormack says.
Visiting small businesses in Belmont this morning, Corangamite MP Sarah Henderson said the tax cuts are a welcomed boost for the local economy.
“I was delighted to welcome Minister for Small Business Michael McCormack to Belmont today to discuss the Coalition Government’s historic tax cuts for small and medium size businesses,” Ms Henderson said.
“Minister McCormack joined me for a street walk in Belmont this morning before speaking to Corangamite small business owners at a small business forum at the Belmont Bowls Club.
“Over 3.1 million small businesses in Australia – including the 16,920 small businesses in Corangamite – will pay less tax under the Coalition Government’s Ten Year Enterprise Tax Plan passed in Parliament last week.
“Reducing the tax burden on small business gives Corangamite small business owners the chance to grow, to hire more locals and pay them more.
“This will benefit the Corangamite community, because our Government understands that when taxes are lower for small businesses, that money is reinvested in expanding a business, hiring more people, giving them more hours of work and paying them more - not put in a business’ back pocket.
“Under our plan, Corangamite businesses with turnovers up to $10 million are now defined as small businesses and will pay a lower company tax rate of 27.5 per cent from this financial year, before eventually falling to 25 per cent.”
Ms Henderson said the 27.5 per cent company tax rate delivers the lowest tax rate for small business in 50 years.
“Cutting the company tax rate and broadening the definition of small business also means more local small businesses can now access the instant asset write-off program,” Ms Henderson said.
“The Coalition Government’s Enterprise Tax Plan means more small businesses can instantly write-off new equipment worth up to $20,000 and claim it back straight away.
“Anything from a stainless steel servery to photocopiers, computers or coffee machines can now be bought and claimed back against tax, freeing up cash flow for local small businesses, thanks to our changes.”
Speaking at today’s forum, Small Business Minister Michael McCormack said the small business tax cut, simpler paperwork and greater support for small business are designed to take the pressure off small business, to help the sector grow and create local jobs.
“Cutting small business taxes has always been top of the Coalition Government’s agenda and I am delighted we have delivered the lowest tax rate in half a century,” Mr McCormack said.
“Small business already makes up more than 97 per cent of businesses in Australia and employs more than 5.5 million Australians but we want to see this number grow.
“The Government understands delivering lower company taxes means more Australians can start a small business, have a go and create jobs.”