Almost 15,000 small and medium-sized businesses in Gippsland will get additional tax cuts five years earlier than planned, in a major boost to the regional economy.
The Nationals Member for Gippsland Darren Chester said lower company tax would mean more jobs and higher wages.
“Legislation introduced into Parliament today will fast-track our business tax relief for 14,724 small and medium businesses across Gippsland,” Mr Chester said.
Nationally, more than three million businesses which employ nearly seven million Australians will benefit.
Businesses with a turnover under $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 businesses in Gippsland, we will make a more immediate difference to the individual businesses and the people who work for them,” Mr Chester said.
“The Federal Government is making this change to support local businesses. We, as locals, also need to support local businesses and service providers at every opportunity.
“The small business sector is one of the largest employers in regional areas like Gippsland. This sector relies on owners having confidence to continue investing in their business and their community.
“We need to remember that local shops employ local people. When you supporting a local business, you are also supporting local jobs and your community.”
Under the tax changes, a small business which makes $500,000 profit will have an additional $7,500 in 2020-21 and $12,500 in 2021-22 to invest back into the business or its staff, or improve cash flow.
“Fast-tracking tax relief for small and medium businesses is an important investment in the future economic growth of Gippsland and our nation,” Mr Chester said.
