Federal Member for Pearce, Christian Porter, said that the 2016 Budget announced last night will deliver tax cuts and incentives for local small businesses and relief for hard-working families in Pearce.
Mr Porter said that it is vital that our tax system drives economic growth and national prosperity and the measures introduced in the 2016 Budget will encourage workforce participation and business investment to improve growth and create the jobs of the future.
“This tax plan backs hard-working Australians – it will drive jobs and growth across the country, with real benefits for individuals and businesses here in Pearce,” Mr Porter said.
“There are 3,540 average wage earners in Pearce who the Coalition Government want to prevent moving into a higher tax bracket so that when they earn more they won’t be taxed more.
“By increasing the middle tax bracket threshold from $80,000 to $87,000 from 1 July 2016, the Government is preventing these families from facing the 37 per cent marginal tax rate this coming financial year.”
From 1 July 2017 the Coalition Government will introduce a Low Income Superannuation Tax Offset to ensure that low income earners are not paying more tax on their superannuation than they are on their take-home pay.
“Reducing the tax on superannuation for low income earners means that 21,631 individuals in Pearce, earning $37,000 per year or less, will effectively pay no tax on the money they contribute to superannuation,” Mr Porter said.
From 1 July this year, small and medium businesses with annual turnover less than $10 million will have their company tax rate cut to 27.5 per cent. For the 3,000 or so companies in Pearce cutting the company tax rate will make it easier for these businesses to expand and create more jobs.
Since many small businesses are not companies, also from 1 July 2016, the Government will also increase the unincorporated small business tax discount to 8 per cent and extend the threshold from a turnover of $2 million to $5 million. After the initial increase, the discount will be increased in phases to a final discount rate of 16 per cent from 1 July 2026.
The Government is easing the burden on small businesses by increasing access to a range of small business tax concessions and expanding these concessions to businesses with an annual turnover of less than $10 million.
Mr Porter said that this will enable 14,800 or so businesses in Pearce to access these concessions.
Access to the small business capital gains tax concession will remain at a turnover of less than $2 million.
“These tax cuts will provide significant benefit to our local businesses and help drive jobs and growth in Pearce,” Mr Porter said.
“The 2016 Budget is an economic plan for Australia – it is a plan for a strong new economy with more jobs and growth.”