Small business tax cuts now in effect

THE Coalition Government’s small business tax cuts are now in effect, with nearly 940,000 small and family businesses in Victoria having their company tax rate reduced from 27.5 per cent to 26 per cent..
The cut applies to incorporated small and family businesses with a turnover of less than $50 million.
For unincorporated businesses, the small business income tax offset has increased from 8 per cent to 13 per cent.
Under legislation passed in October 2018, the Morrison Government brought forward tax relief for small and medium businesses by five years to come into effect on July 1, 2020.
Victorian Liberal Senator Sarah Henderson said bringing forward these tax cuts would be a shot in the arm for hard-working small and family businesses in Victoria.
“At a time they need it most, these tax cuts will lead to more investment, increased employment opportunities for Australians and helping small business owners keep more of their money.”
Minister for Employment, Skills, Small and Family Business Michaelia Cash said the tax cuts were a big win for the small business sector.
“Small businesses are the backbone of our economy. We have around 3.5 million small businesses across the country. They are a vital part of our COVID-19 recovery.
“As COVID-19 health restrictions ease and the economy re-opens, this tax relief will support Australian small and family businesses to bounce back stronger and get to the other side of this crisis.”
Treasurer Josh Frydenberg said the legislated tax cuts would provide further support to small business during the COVID-19 crisis.
“The Coalition Government has delivered extensive support for small and medium sized businesses during the COVID-19 crisis. We have extended the Instant Asset Write Off to $150,000 for another six months, are providing the Cash Flow Boost of up to $100,000 for employing small businesses, and are boosting access to capital through our COVID-19 SME
Guarantee Scheme.”