Shorten supports tax cuts
ALMOST 900,000 Victorian businesses will be guaranteed tax relief after Opposition Leader Bill Shorten confirmed he will support the federal government’s plan to fast track $3.2 billion in company tax cuts.
The move will deliver significant tax relief for small and medium-sized companies five years earlier than had previously been promised.
Tax rates for businesses turning over up to $50 million would be slashed from 27.5 per cent to 26 per cent in 2020-21, and down to 25 per cent in 2021-22.
The cuts will deliver thousands of dollars a year back into the pockets of the nation’s army of self-employed, and a company making a $500,000 annual profit would pay $12,500 less.
Mr Shorten said yesterday he would support the move and pay for it by delaying the introduction of its proposed Australian Investment Guarantee by 12 months.
“Supporting this measure provides certainty to small business ahead of the next election,” Mr Shorten said.
“Labor will deliver the same tax relief for small business as the Coalition.”
Almost 6.6 million Australians, more than 1.5 million of them Victorians, own or work for businesses that turn over less than $50 million.
Prime Minister Scott Morrison plans to introduce the legislation when parliament returns next week.