Butcher Robert Mills is one of the local business owners who have given the thumbs up to the Turnbull Government for cutting company tax rates.
Mr Mills, who owns and operates Mt Annan Quality Meats, said the tax breaks would have an immediate effect.
“Any assistance us small business owners can get is much appreciated,” Mr Mills said.
“We pay our workers first, I have eight employees, and then our suppliers.
“The cost of meat is going up all the time, and the cost of running a business is also high, so whatever help we can get from the government is great,” Mr Mills said.
Federal Member for Hume Angus Taylor says 16,090 businesses in his electorate would benefit from the Ten Year Enterprise Tax Plan – including at least 460 small to medium businesses with turnovers of between $2 million and $10 million.
“The government understands that when taxes are lower, that money is reinvested in expanding a business, hiring more people and giving them more hours of work,” Mr Taylor said.
“This is fantastic news for the communities and businesses in Hume because it also creates confidence – and certainty about company tax rates for the next decade.”
Businesses with turnovers up to $10 million are now defined as small businesses and will pay a lower company tax rate of 27.5 per cent from this financial year, before it eventually falls to 25 per cent.
The 27.5 per rate will kick in from 2017/18 for businesses with turnover of up to $25 million and in 2018/19 for those with turnover up to $50 million. The tax rate for all businesses with turnover of up to $50 million will fall to 25 per cent by 2026/27.
Mr Taylor said the 27.5 per cent company tax rate delivers the lowest tax rate for small business in 50 years
“Nationally, more than three million small and medium sized businesses – from the local newsagent to the local butcher to the local pub – will benefit from the cuts. This will allow them to invest more, employ extra staff and pay higher wages,” Mr Taylor said.
Cutting the company tax rate and broadening the definition of small business also means more local small businesses can now access the instant asset write-off program.
“The Government’s Enterprise Tax Plan means more small businesses can instantly write-off new equipment worth up to $20,000 and claim it back straight away,” Mr Taylor said.
[social_quote duplicate=”no” align=”default”]“Anything from a stainless steel servery to photocopiers, computers or coffee machines can now be bought and claimed back against tax, freeing up cash flow for local small businesses, thanks to our changes.”[/social_quote]
Nationally, these tax cuts will put $5.2 billion back into the hands of small and medium sized businesses to expand on their hard work.
Once the Enterprise Tax Plan is fully delivered, it will permanently increase the size of the economy by 1.2 per cent of GDP – that’s more than $17 billion in today’s dollars every single year.
