Small business tax cuts to be fast-tracked

16th October 2018

Small businesses could be set to benefit as Prime Minister Scott Morrison promised to fast-track legislative tax cuts.

The Coalition now wants to bring forward a drop to a 25 per cent tax rate for companies with a turnover of up to $50 million, which was originally scheduled for 2026/27.

Mr Morrison has said that legislation would be introduced to Parliament, so that the plan is fully implemented by 2021/22, five years earlier than expected.

The biggest issue, however, is whether this tax relief will improve sluggish wage growth in Australia.

“If small businesses and medium-sized businesses are paying less tax to the government, then they are more able to provide better wages to their employees,” Mr Morrison told the ABC’s AM program.

But whether these businesses will provide support for wages and invest more into their businesses will be entirely up to them.