Relief for small business just around the corner
The whole country is set to benefit from the Federal Government’s small business tax cuts with legislation passed last week to allow businesses to invest more, grow more and employ more.
Under the leadership of our Minister for Small Business and Member for Riverina, Michael McCormack, the reform has changed the definition of small business from having an annual turnover of $2 million to $10 million, to allow more Australian small businesses access to the benefits the Federal Government is providing.
“We know lower taxes mean small businesses can grow, pursue new ideas and create more jobs,” Michael said.
Australian small businesses employ around 6.5 million people and contribute $380 billion to our gross domestic product.
Roughly three million small businesses will also receive a much-needed tax cut, down to a rate of 27.5%, boosting the confidence amongst employers right across Australia.
But what does it mean for our local communities?
The café around the corner will be able to hire a new permanent employee, a tradie can upgrade their equipment, or a struggling local manufacturing firm now has the capacity to re-invest into the business.
Essentially, the more money that goes into local businesses, the more money that goes back into local communities.
Michael McCormack said the legislation proves The Nationals’ are the Party for small business with the legislation part of a broader plan to keep supporting small businesses.
“No matter where I have travelled, from our largest cities to our smallest towns and villages, the need for lower taxes has been top of mind. Small businesses want to grow and hire more people, but they need some of the tax pressure taken off.”
The Federal Government’s recent review of Australia’s competition policy is another item on The Nationals’ agenda that backs the small business sector.
The Competitions Policy Review Bill will implement a number of recommendations from the Harper Review to reinvigorate competition and level the playing field for small businesses.
The provisions implemented ensure small businesses, who typically have less bargaining power than a larger supplier, will no longer be disadvantaged in individual negotiations.
“Simplifying the process and introducing greater flexibility in the collective bargaining framework will enable small business to get on with doing what they do best and provide them with the ability to negotiate with bargaining power equal to a larger firm, achieving a more efficient and pro-competitive outcome,” Michael said.