Millions of small and medium sized businesses will pay less tax, sooner – with the Coalition Government delivering its tax relief five years earlier than planned.
This will mean more investment, more jobs and higher wages.
We will introduce legislation during the next session of Parliament, fast-tracking our business tax relief for more than three million businesses that employ nearly seven million Australians.
This means businesses with a turnover below $50 million will face a tax rate of just 25 per cent in 2021-22 rather than from 2026-27 as currently legislated. Similar timing changes will apply to the roll out of the 16 per cent tax discount for unincorporated businesses.
This means that a small business, such as an independent supermarket or a pub, that makes $500,000 profit, will have an additional $7,500 in 2020-21 and $12,500 in 2021-22 to invest back into the business or staff, or help to manage cash flow.
This builds on the first stage of company tax relief that our Government delivered in May 2017, because we believe in a fair go for those who have a go – that's what our tax plan is all about.
This change will help to ensure Australian businesses are competitive, to protect our economy and jobs.
The legislation that delivers this additional tax relief will be a major test for Bill Shorten – does he support Australian businesses, Australian workers and Australian jobs? Or is Bill Shorten's only plan for the economy to introduce an extra $200 billion in taxes?
Our economic plan is working and the fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of our nation.