A CUT in the company tax rate – to its lowest level in many decades – has been delivered in the House of Representatives this afternoon, Small Business Minister Michael McCormack says.
“Since the Senate passed our small business tax cut plan in March, I have travelled to 44 cities, towns and villages in 24 electorates and have heard loud and clear how Australian small businesses will use the tax cut to grow their business and create more jobs,” Mr McCormack said.
“I have met hundreds of Australians in small business who will use the tax cut to pursue new ideas, to invest in their business and hire more people. Small business will not put the tax cut in its pocket – it will be reinvested to create even more opportunities.
“That’s why I was delighted to take the legislation through the House of Representatives on the first sitting day since the Senate’s vote.
“Every small business is the realisation of someone’s dream and our tax cut plan gives them the opportunity to see those dreams become a reality.”
Mr McCormack said the Ten Year Enterprise Tax Plan also redefines ‘small business’ so more businesses will be able to take advantage of the 27.5 per cent tax rate, as well as the instant asset write-off.
“The Coalition Government knows that just because a small business is turning over more than $2 million, that doesn’t mean the business is making that much,” Mr McCormack said.
“This is why we have changed the ‘small business’ definition to a turnover of $10 million, so more small businesses can pay less tax and instantly write-off new equipment thanks to the instant asset write-off programme.
“This will help small businesses grow, invest and – importantly – create jobs and opportunities.”
Mr McCormack said when the Government took its small business taxes to Parliament, the Labor Party stood in the way.
“When we cut small business taxes, Labor voted against it,” Mr McCormack said.
“The Labor Party voted against giving more small businesses access to the instant asset write-off to help small businesspeople invest in their business.
“It just goes to show what Labor does not understand – it is small business, not Government, which creates jobs.
“We back small business every day whilst Labor stands in the way.”