Small business welcomes tax cuts
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.”