Australia’s 3.1 million small businesses – including almost 14,000 small and medium businesses in the Pearce electorate – will pay less tax thanks to the Coalition Government’s company tax cuts.
Federal Member for Pearce, Christian Porter, said that reducing the tax burden on small business gives them the chance to grow, to hire more locals and pay them more.
“The Government understands that when taxes are lower for small businesses the local community benefits,” Mr Porter said.
“Money that has been freed up, through tax cuts like these, can be 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.
“Our hardworking small businesses need a tax system that actively supports them and that is what we are providing.
“More investment and more jobs.”
James Young, founder of Old Young’s Distillery in the Swan Valley, said that he is focused on expanding his business and to that end, will always re-invest.
“Any money that we can get back, we thump back into the business,” Mr Young said.
“Whether that be a tax cut like this one or rebates – all of those things are huge to us.”
Shaun Bloomfield, owner of Pulse Sports in Ellenbrook, is also excited about what the tax relief means for his small business.
“I want to expand the business – these tax cuts are an opportunity for me to free up some capital and reinvest in the business,” Mr Bloomfield said.
“In expanding I would have the need to employ another person to take the business further and the tax cuts give me the means to do that.”
Under the plan, Pearce 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.
Mr Porter 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.
“The 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,” Mr Porter said.
“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.
“We believe in practical support for small business and have delivered again with our company tax cuts and instant asset write-off.”
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.
“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,” Mr Porter said.
“The Coalition Government understands delivering lower company taxes means more Australians can start a small business, have a go and create jobs.”
For a list of the measures designed to support small business go to www.business.gov.au