Published on May 9, 2017

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 Tax Breaks for Small Businesses

A tax cut approved April will see small business paying less corporate tax. Businesses with annual turnovers of $10 million or less for the 2016-2017 financial year will have their tax rate cut to 27.5%.

The turnover threshold to qualify for the lower rate will start at $10 million (in 2016-17) and progressively rise until the 27.5 per cent rate applies to corporate tax entities with less than $50 million aggregated annual turnover in the 2018-19 income year.

Further cuts are planned to reduce the corporate tax rate to 25% by the 2026-2027 fiscal year for corporate tax entities with less than $50 million aggregated annual turnover.

The cut seeks to provide a more attractive investment proposition for businesses and enable Australian businesses to more easily compete in the international market.

The government is looking to back strong competition across diverse markets as Australia moves away from the mining boom.

The transition from mining has been a rough road for many businesses and individuals, with job losses in the Hunter Valley numbering in the thousands.

According to the ATO the tax break will boost our economy by 1% over the long term, leading to jobs growth and security.

The Government has rolled out a number of concession and simplified tax rules for small businesses over the last 12 months.

Tax concessions including simplified depreciation rules, stock trading rules and GST/PAYG instalments are all intended to reduce the onus of running a small business.

While many of the concessions will not roll out until July 2017, the Government has raised the threshold for businesses able to access these changes from $2 million to $10 million annual turnover.

Along with the expansion of thresholds, the new tax cut provides a much needed boost to small and medium business owners.

The ATO’s release can be found at Company Tax Cut.

 


Cessnock City Council is urging local business owners to attend a FREE workshop aimed at breaking down barriers between Cessnock’s workforce and millennials, generating opportunity for young people and business

To register please visit https://advancecessnock.com.au/register/.