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The federal government has announced that it plans to introduce tax relief for small businesses five years sooner.
In a joint statement from Prime Minister Scott Morrison and Treasurer Josh Frydenberg, the federal government has announced that it will introduce legislation to fast-track tax relief for businesses with a turnover of less than $50 million to 2021–22, rather than 2026–27.
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The advanced tax relief would reduce the small business tax rate from 27.5 per cent to 25 per cent.
“This means that a small business, such as an independent supermarket or a pub, that makes $500,000 profit will have an additional $7,500 in 2020–21 and $12,500 in 2021–22 to invest back into the business or staff, or help to manage cash flow,” the government said.
“This builds on the first stage of company tax relief that our government delivered in May 2017, because we believe in a fair go for those who have a go — that’s what our tax plan is all about.
“This change will help to ensure Australian businesses are competitive to protect our economy and jobs.”
The government noted that it will introduce legislation during the next session of Parliament.
[Related: SMEs to be spared as government abandons tax plans]
