Hard working local small businesses will be given tax relief from the Turnbull Government with the small company tax rate being gradually reduced to 25 per cent.
Federal Member for Forde, Bert van Manen MP said the Turnbull Government’s 2016 Budget cut the small business company tax rate to 27.5 per cent to all small companies with an annual turnover of less than $10 million from July 1, 2016.
“This will greatly help more than 4000 local small businesses in my electorate of Forde,” Mr van Manen said.
“Our Government is committed to easing the tax burden and making life easier for our hard working small businesses to ensure they can grow, prosper and create new jobs.”
Mr van Manen said small business was the engine room of our economy.
“The Turnbull Government is easing the burden on small businesses by increasing the access to a range of small business tax concessions, and expanding these concessions to businesses with an annual turnover of less than $10 million.
“These changes will make the small business tax concessions available to over 90,000 additional businesses from July 1, 2016, including more than 4000 local businesses in Forde.”
New changes include:
- Simplified depreciation rules, including the ability to claim an immediate deduction for assets purchased costing less than $20,000 until June 30, 2017;
- Simplified trading stock rules, giving businesses the option to avoid an end of year stocktake if the value of their stock has changed by less than $5000;
- The option to account for GST on a cash basis and pay GST instalments as calculated by the Australian Taxation Office (ATO);
- A simplified method of paying PAYG instalments calculated by the ATO;
- Making GST administration easier by simplifying the Business Activity Statement (BAS); and
- Other tax concessions available to small business, including fringe benefits fax (FBT) exemptions (FBT changes from April 1, 2017) and immediate deductibility of professional expenses.
“We are committed to creating the right conditions for our small businesses to innovate, expand and create new jobs,” Mr van Manen said.
“Australia’s hard working small businesses need a tax system that actively supports them and that is what we are providing.”
These important reforms build on the Government’s biggest small business initiative in our nation’s history, the Growing Jobs and Small Business package, which was a key feature of last year’s Budget.