Flagpost is a blog on current issues of interest to members of the Australian Parliament
The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 (the new Bill) was introduced into the House of Representatives on 16 October 2018. The new Bill seeks to implement the Government’s announcement of 11 October 2018 that it would bring forward by five years the implementation of tax cuts for small and medium sized incorporated businesses with annual turnover of less than $50 million per annum. The changes would mean that small and medium businesses will face a corporate tax rate of 25 per cent from 1 July 2021, rather than 1 July 2026.
Small business accounts for the majority of businesses in Australia. In terms of economic output and employment, it also makes a significant contribution.Counts of small businessesThe latest count of businesses by the Australian Bureau of Statistics (ABS) was for 30 June 2011. The statistics show:there were just over 2.1 million businesses in Australiaover 61 per cent were non-employing businesses andalmost 96 per cent were small businesses (defined as employing fewer than 20 persons, includes non-employing).Year on year the number of small businesses grew by 0.4 per cent in 2010-11. The fastest growth occurred in those businesses employing 15 to 19 persons, 0.9 per cent (See Table 1). Howev... Read more...
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