Small busi­ness wel­comes tax cuts

The Advocate (Perth) - - NEWS -

ABOUT 14,000 small and medium busi­nesses in the Pearce elec­torate could pay less tax, thanks to the Fed­eral Government’s com­pany tax cuts.

Pearce MHR Chris­tian Porter said re­duc­ing the tax bur­den on small busi­ness gave them a chance to grow, hire more peo­ple and pay them more.

“When taxes are lower for small busi­nesses, the lo­cal com­mu­nity ben­e­fits,” he said.

“Money that has been freed up, through tax cuts like these, can be rein­vested in ex­pand­ing a busi­ness, hir­ing more peo­ple, giv­ing them more hours of work and pay­ing them more, not put in a busi­ness’s back pocket.”

James Young, founder of Old Young’s Dis­tillery in the Swan Val­ley, said his fo­cus was to ex­pand his busi­ness.

“Any money that we can get back, we thump back into the busi­ness,” he said.

“Whether that be a tax cut like this one or re­bates, all of those things are huge to us.”

Shaun Bloom­field, owner of Pulse Sports in El­len­brook, was ex­cited about what the tax re­lief meant for his small busi­ness.

“I want to ex­pand the busi­ness; these tax cuts are an op­por­tu­nity for me to free up some cap­i­tal and rein­vest in the busi­ness,” he said.

“In ex­pand­ing, I would have the need to em­ploy an­other per­son to take the busi­ness fur­ther and the tax cuts give me the means to do that.”

Un­der the plan, 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 even­tu­ally fall­ing to 25 per cent.

Mr Porter said the 27.5 per cent com­pany tax rate de­liv­ered the low­est tax rate for small busi­ness in 50 years.

The changes also mean more 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 Porter said.

“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.”

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.