Prime Minister Scott Morrison (pictured) will bring forward tax cuts for small and medium businesses by five years - heeding the call by Conservative Party leader Cory Bernardi, two months ago, for him to do just that.
The Guardian reports, under the plan, the government will lower the tax rate for businesses with an annual turnover of less than $50m from 27.5% to 25% by 2021-22 rather than from 2026-27 as currently legislated.
The Turnbull government passed tax cuts for small and medium businesses in March 2017 but plans to extend the tax cuts to big business were thwarted by the Senate, prompting Senator Bernardi to call on the government to accelerate the tax cuts for small and medium businesses instead.
Scott Morrison and the treasurer, Josh Frydenberg, promised to introduce legislation in the next session of parliament, arguing the policy “will mean more investment, more jobs and higher wages”.
“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,” they said.
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