Gleeson’s Transport and Flooring Xtra in South Nowra are just two of thousands of small and medium businesses across Gilmore who will benefit from the Coalition Governments company tax cuts.
As a former Business owner, the Federal Member for Gilmore, Ann Sudmalis said she knows how crucial these historic cuts are for local enterprise.
“Passing these cuts is critical to growing the local economy and strengthening business, a boost we really need,” she said.
“As a former small business owner, I am proud to inform all our local small businesses that we are immediately cutting the company tax rate to 27.5% this financial year for businesses with a turnover of up to $10 million.
“This confirms the new definition of small business to include those with turnovers of up to $10 million instead of $2 million.”
In addition, all small businesses can immediately access:
- The instant asset write-off, allowing them to write-off up to $20,000 worth of new equipment and claim it back straight away. This is a reminder for the financial year ending on 30 June 2017. But even more importantly this instant asset write-off has been extended for another year until 30 June 2018
- Simplified trading stock rules, with the option to avoid end of year stock-take if the value of their stock has changed by less than $5,000
- Simplified method of paying PAYG instalments calculated by the ATO
- An option to account for GST on a cash basis and pay GST instalments as calculated by the ATO
- Tax concessions currently available to small businesses, such as fringe benefits tax (FBT) exemptions
- Simpler business activity statements (BAS), reducing GST compliance costs, from 1 July 2017
- For businesses that are not incorporated the small business tax discount will be increased to 8% for businesses with annual turnovers up to $5 million.
“Once the Enterprise Tax Plan is fully delivered, it will permanently increase the size of the economy by 1.2 per cent of GDP – that’s more than $17 billion in today’s dollars every single year for the Government to deliver more infrastructure,” said Mrs Sudmalis.
Gleeson Transport Manager, Tim Gleeson said the tax cuts would be a benefit to the family business allowing it to invest in new equipment and staff, as a result expand its operation.
“This is great news, yes it will help my bottom line but will also give the business added resources to re-invest in equipment and in staff.”
Val Baker, co-owner of Nowra Flooring Xtra said that the 27.5% incentive means her business will remain in Gilmore for many years to come.
“I’m delighted, the latest tax break helps future proof Nowra Flooring Xtra,” said Ms Baker.
Mrs Sudmalis said “The Government’s national economic plan is fully funded and will grow the economy, creating more jobs here in Gilmore.”