From July 1 2020, the nearly 14,600 small and family businesses in Barker will be paying less tax as a result of legislated tax cuts passed by the Morrison Government.
As the 2020-2021 financial year begins, incorporated small and family businesses with a turnover of less than $50 million will see their company tax rate reduced from 27.5% to 26%.
Unincorporated businesses will also benefit as the rate of the small business income tax offset increases from 8% to 13%.
The changes mark the next stage of the Morrison Government’s accelerated small business tax cuts, legislated in October 2018, which brought forward tax relief for small and medium businesses by five years.
Member for Barker Tony Pasin said this was a big win for small businesses across Barker.
“Small businesses are the backbone of our economy. We have around 3.5 million small businesses across the country and more than 14,600 here in Barker. They are a vital part of our COVID-19 recovery,” Mr Pasin said.
“As COVID-19 health restrictions ease and the economy re-opens, this tax relief will support small and family businesses to bounce back stronger and get to the other side of this crisis.”
“At a time they need it most, these tax cuts will lead to more investment, increased employment opportunities.”
The Coalition Government has delivered extensive support for small and medium sized businesses during the COVID-19 crisis including extended the Instant Asset Write Off to $150,000 for another six months, a Cash Flow Boost of up to $100,000 for employing small businesses, and boosting access to capital through the COVID-19 SME Guarantee Scheme.
“This is in addition to the extensive income support through JobKeeper, JobSeeker, and our Supporting Apprentices & Trainees wage subsidy,” Mr Pasin said.