Member for New England, Barnaby Joyce, has applauded legislated tax cuts resulting in significant relief for small and family businesses in the electorate.
“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%,” Mr Joyce said.
“This means more money in the pockets of New England businesses – from the coffee shops in Uralla, hardware stores in Scone, hairdressers in Inverell and thousands of other enterprises who are doing it particularly tough because of the Coronavirus pandemic.”
The changes mark the next stage of the Coalition Government’s accelerated small business tax cuts, legislated in October 2018, which brought forward tax relief for small and medium businesses by five years.
Minister for Employment, Skills, Small and Family Business, Michaelia Cash, said this was 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," Minister Cash said.
“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.”
Mr Joyce said that bringing forward these tax cuts will be a shot in the arm for hard-working small and family businesses in New England.
“At a time when they need it most, these tax cuts will lead to more investment, increased employment opportunities for Australians and help small business owners keep more of their money,” he said.
"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.
“This is in addition to the extensive income support that JobKeeper, JobSeeker and our Supporting Apprentices and Trainees wage subsidy are providing to support small businesses and sole traders in the New England and across our nation,” Mr Joyce said.