24 October 2016

Tax cuts in spotlight as Australian Chamber tour heads west

ROHAN Jewellery in Perth was in the spotlight today as Federal Small Business Minister Michael McCormack and CEO of the Australian Chamber of Commerce and Industry, James Pearson, took their nationwide listening tour west.

"The best feedback I receive as Small Business Minister is when I am out and about, chatting with people over the counter and in their business, listening directly to Australia's more than 2 million small businesses about what matters to them," Mr McCormack said.

In Perth as part of the Chamber of Commerce and Industry of WA meeting this morning, Minister McCormack and Mr Pearson joined CEO Deidre Willmott and Chamber members to talk red tape reduction, as well as the importance of the lowering of the company tax rate before visiting Rohan Jewellers in the city.

Owned and operated by Rohan Milne, the business has been in operation nine years and employs 12 people, including casuals. With an annual turnover of more than $2 million, Mr Milne said the Government's plan to lower taxes for small business with a $2-10 million turnover was critical.

"If you have a turnover of more than $2 million that does not mean you're no longer a small business. We would love to access the instant-asset write off, which was a great idea, but are held back because we are just over the $2 million cap," Mr Milne said.

Minister McCormack said stories such as Mr Milne's is why he's focused on implementing the Government's Ten Year Enterprise Tax Plan.

"Rohan Milne is right – a $2 million turnover doesn't mean a business has a $2 million profit. That's why our plan to help people like Rohan grow and expand their business through a lower company tax rate and the ability to use the instant asset write-off programme is so important," Mr McCormack said.

Australian Chamber CEO James Pearson said small businesses across the country were enthusiastic about the meetings.

"Australia's small businesses have growing confidence. I am pleased to hear from businesses such as Rohan Jewellers about their wish to expand and employ more people. It is great to see our advocacy is helping small business in the West remain strong into the future," Mr Pearson said.

CCI CEO Deidre Willmott said the Western Australian business community was pleased by the Federal Government's budget commitment to reduce the company and small business tax rates.

"Reducing the company and small business tax rates will be transformative for Western Australian business – particularly small businesses," Ms Willmott said.

"Creating a business-friendly economic environment is critical to support economic growth and create more jobs for local workers, so WA business has been pleased by the Federal Government's commitment to reduce tax and regulatory burden.

"The Australian Chamber movement is plays a vital role in connecting policymakers with the people on the ground in industry and it's great to see such a willingness to engage with small business and keep it as a focus in Canberra."

Mr McCormack and the Australian Chamber's nationwide listening tour continues to the Northern Territory and Queensland next week.