Con­sen­sus opens way for tax cut

NT News - - NEWS - AAP

SMALL and medium sized busi­nesses across Aus­tralia have been guar­an­teed a tax cut within the next three years.

The as­sur­ance comes as La­bor threw its sup­port be­hind the Fed­eral Gov­ern­ment’s plan to de­liver tax re­lief to com­pa­nies with an­nual turnovers of less than $50 mil­lion, five years ear­lier than planned.

Un­der the Coali­tion’s plan, the busi­nesses will have their tax rate dropped to 26 per cent in 2020/21, then to 25 per cent the fol­low­ing year.

The move comes af­ter the busi­nesses al­ready had their rate re­duced from 30 per cent to 27.5 per cent last year.

La­bor Leader Bill Shorten said the Op­po­si­tion’s sup­port for the fur­ther cuts, which Prime Min­is­ter Scott Mor­ri­son ear­lier said was a point of dif­fer­ence be­tween the par­ties, was about giv­ing cer­tainty to busi­nesses.

Mr Mor­ri­son said Aus­tralia’s small and medium busi­nesses know his gov­ern­ment has their back.

“What we’re do­ing for those busi­nesses is get­ting their taxes down and we’re go­ing to get their elec­tric­ity prices down,” the PM told ABC TV.

The tax cuts will cost about $3.2 bil­lion, and while both sides of pol­i­tics now sup­port them, they each have a dif­fer­ent plan for foot­ing the bill.

The Gov­ern­ment would use money it didn’t get to spend on tax cuts for big­ger busi­nesses, which were knocked back by the Se­nate in Au­gust.

La­bor wants to pay for the cuts by de­lay­ing its pro­posed Aus­tralian In­vest­ment Guar­an­tee by 12 months.

The guar­an­tee would give all busi­nesses in Aus­tralia the abil­ity to im­me­di­ately deduct 20 per cent of any new el­i­gi­ble as­set worth more than $20,000.

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