Xinhua, Canberra :
Australia’s prime minister has promised to fast-track tax cuts for small and medium-sized businesses.
Scott Morrison announced on Thursday that the tax cuts for businesses with an annual turnover of less than 50 million Australian dollars (35.36 million U.S. dollars) would be brought forward five years at a cost of 3.2 billion Australian dollars.
Under the plan the tax rate for those businesses will be cut from 27.5 percent to 25 percent by 2021-22 rather than by 2026-27 as dictated in legislation passed by the government in March 2017.
“Our government is unashamedly on the side of the women and men who run small and medium-sized businesses in this country,” Morrison said in a speech on Thursday.
“And we’re on the side of the millions of people they employ.
“This is good news for all Australians – lower company tax supports more investment, higher productivity, more jobs and higher wages.”
The proposal was approved by the government’s Expenditure Review Committee on Thursday and will be introduced as legislation when parliament returns on Monday.
“This means that a small business that makes 500,000 AUD profit, will have an additional 7,500 AUD in 2020-21 and 12,500 AUD in 2021-22 to invest back into the business or staff, or help to manage cash flow,” Morrison and Treasurer Josh Frydenberg said in a statement released on Thursday morning.
“This change will help to ensure Australian businesses are competitive, to protect our economy and jobs.”
The prime minister said that whether the cuts lead to higher wages depends on the businesses that will benefit from the policy. “But what we found last time when we provided this tax relief is that small businesses did provide support for wages in some cases,” he told Australian Broadcasting Corporation (ABC) radio.
“In other cases they invested more in their businesses, because small and medium-sized businesses that’s what they do. They don’t just walk away and put the money in their pocket.
Australia’s prime minister has promised to fast-track tax cuts for small and medium-sized businesses.
Scott Morrison announced on Thursday that the tax cuts for businesses with an annual turnover of less than 50 million Australian dollars (35.36 million U.S. dollars) would be brought forward five years at a cost of 3.2 billion Australian dollars.
Under the plan the tax rate for those businesses will be cut from 27.5 percent to 25 percent by 2021-22 rather than by 2026-27 as dictated in legislation passed by the government in March 2017.
“Our government is unashamedly on the side of the women and men who run small and medium-sized businesses in this country,” Morrison said in a speech on Thursday.
“And we’re on the side of the millions of people they employ.
“This is good news for all Australians – lower company tax supports more investment, higher productivity, more jobs and higher wages.”
The proposal was approved by the government’s Expenditure Review Committee on Thursday and will be introduced as legislation when parliament returns on Monday.
“This means that a small business that makes 500,000 AUD profit, will have an additional 7,500 AUD in 2020-21 and 12,500 AUD in 2021-22 to invest back into the business or staff, or help to manage cash flow,” Morrison and Treasurer Josh Frydenberg said in a statement released on Thursday morning.
“This change will help to ensure Australian businesses are competitive, to protect our economy and jobs.”
The prime minister said that whether the cuts lead to higher wages depends on the businesses that will benefit from the policy. “But what we found last time when we provided this tax relief is that small businesses did provide support for wages in some cases,” he told Australian Broadcasting Corporation (ABC) radio.
“In other cases they invested more in their businesses, because small and medium-sized businesses that’s what they do. They don’t just walk away and put the money in their pocket.
