From July 1 2020, over 40,000 small and family businesses on the Northern Beaches will be paying less tax as a result of legislated tax cuts passed by the Morrison Government.
As the 2020-21 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%.
Member for Mackellar, Jason Falinski MP said that bringing forward these tax cuts will be a shot in the arm for hard working small and family businesses on The Beaches.
“Small Businesses are the backbone of our economy, there are well over 35,000 small businesses on the Northern Beaches and they are a vital part of our COVID-19 recovery.” Mr Falinski said.
“I set up my own business in 2004, and know all too well, the day to day struggles of keeping it running.”
“Some of the hardest days were when my credit card had maxed out and I had to choose between buying nappies for my daughter, and groceries for my wife and I.”
“These tax cuts will help families on the Northern Beaches as they are struggling with a lack of business due to the COVID pandemic.”
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.”
These tax cuts will be highly valued for hard working small and family businesses at a time they need it most, leading to more investment, increased employment opportunities for Australians and helping small business owners keep more of their money.
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 JobKeeper, JobSeeker, and our Supporting Apprentices and Trainees wage subsidy are providing to support small businesses and sole traders across Australia.” Mr Falinski said.