The Senate recently voted 30 votes to 27 to approve company tax cuts and bring them into line with the rest of the world.
This was centre piece of Prime Minister Malcolm Turnbull’s Government policy and will promote jobs and growth.
Small business will rejoice over these cuts, and it is hoped that this will start to move the tax base away from business to other measures.
The Government has advised that the business tax cuts can apply once they pass the Senate, and Treasurer Scott Morrison issues a statement verifying they will pass the House of Representatives at a later date.
How the tax cuts will be phased in:
- Companies with a turnover of less than $10 million will receive a reduction in their tax rate to 27.5 per cent this financial year.
- In 2017-18, it will be up to a $25 million turnover.
- In 2018-19, it will be up to a $50 million turnover.
The tax rate will progressively reduce down to 25 per cent.