Small and family businesses across the Coast will be paying less tax as a result of tax cuts which came in to effect on July 1.
As the 2020-2021 financial year begins, incorporated small and family businesses with a turnover of less than $50M 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%.
Member for Robertson, Lucy Wicks, said the changes are a big win for the small business sector and mark the next stage of the Federal Government’s accelerated small business tax cuts, legislated in October 2018, which brought forward tax relief for small and medium businesses by five years.
“Small businesses are the backbone of our economy,” Wicks said.
“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 the many small and family businesses across the Central Coast to bounce back stronger than ever.
“Bringing forward these tax cuts will be a shot in the arm for hard working small and family businesses at a time they need it most, leading to more investment, increased employment opportunities for Australians and helping small business owners keep more of their money.”
Source:
Media release, Jul 1
Member for Robertson,
Lucy Wicks