PM wants to fast track business tax cuts

TASMANIAN businesses will share in a $3.2 billion tax cut in Scott Morrison’s biggest pitch yet as PM.

The bold move — which could delay the federal Budget’s return to surplus — will deliver significant tax relief for small and medium-sized companies five years earlier than previously promised. Under the overhaul, tax rates for businesses with a turnover of up to $50 million will 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 each year back into the pockets of Australia’s army of self employed, while a company making a $500,000 annual profit would pay $12,500 less.

The Prime Minister will today detail the policy designed to turbocharge the economy in his most significant announcement since taking office.

“This will mean more investment, more jobs and higher wages,” Mr Morrison said.

The pledge is in stark con- trast to Bill Shorten’s stance against any corporate tax cuts, with the Opposition leader having vowed to freeze the rate at 27.5 per cent.

Almost 6.6 million Australians — including tradies, hairdressers, factory workers, baristas and chefs — own or work for businesses that turn over less than $50 million, which will pay less tax sooner under the Prime Minister’s revamp.

Mr Morrison will today announce his intent to introduce legislation during the next session of federal parliament.

He will also bring forward a 16 per cent tax discount for thousands of unincorporated businesses. The move is expected to cost $3.2 billion over the next four years.