Benalla’s small and medium businesses will be able to increase profits after the Federal Government announcing it would fasttrack a tax-relief plan.
The Federal Coalition promise to deliver the additional tax relief to 886 000 businesses across Victoria five years earlier than planned.
‘‘This is good news for all Victorians — lower company tax means more investment, more jobs and higher wages,’’ Senator Bridget McKenzie said.
‘‘We will introduce legislation during the next session of Parliament, fast-tracking our business tax relief.’’
Businesses with a turnover below $50 million will have a tax rate of 25 per cent in 2021-22 rather than from 2026-27 as currently legislated.
Similar timing changes will apply to the roll out of the 16 per cent tax discount for unincorporated businesses.
‘‘By fast-tracking this tax relief for local businesses, we will also be making a more immediate difference to the 159 000 people who work for them right across our great state,’’ Senator McKenzie said.
‘‘This means that a small business, such as an independent supermarket or a pub that makes $500 000 profit, will have an additional $7500 in 2020-21 and $12 500 in 2021-22 to invest back into the business or staff, or help to manage cash flow.
‘‘This builds on the first stage of company tax relief that our government delivered in May 2017.
‘‘Our economic plan is delivering for all Victorians, including those living in our rural and regional communities.
‘‘Fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of our local communities, our regions and our nation.’’
Boost: Benalla’s small and medium businesses are set to benefit from the Federal Government’s tax-relief plan.