Tax rate cut a boost for region’s small businesses: Chamber
SMALL and medium businesses across NSW have been given the opportunity to grow, innovate and employ more staff as a result of the 2016-17 budget according to the NSW Business Chamber’s Northern Rivers regional manager.
John Murray said: “For some time we have been articulating the need to extend the threshold at which a small business pays the lower company tax rate, and the government has responded with very clear support for the small business sector.
“From July 1, the small business company tax rate will reduce to 27.5% but, more importantly, the turnover threshold increases substantially from an annual figure of $2 million to $10 million.
“The threshold extends each year up to $100 million by 2019-20, meaning that more businesses will benefit from the reduced company tax rate and more importantly, a company won’t be penalised for their ongoing successes.
“Australia is primarily a small and medium business economy but it has taken time for that to be fully recognised by our political decision makers.
“The Federal Government has rightly identified that sustainable jobs growth is going to be driven by the small business sector, and by providing a company tax rate cut this immediately provides small business owners the opportunity to employ those extra few staff members or take on an apprentice.
“There are, of course, multiple benefits to the national economy by giving a young person their first job or providing extra shifts for existing staff members.
“This will be particularly welcomed in regions like the Northern Rivers where there are traditionally fewer opportunities for business owners to make changes to their business operations.
“The three staged approach involves preparing young jobseekers to enter the workforce, an internship programme enabling those jobseekers to gain real work experience and at the same time receive additional funding from the government with businesses receiving an upfront payment of $1000, while the final stage sees further bonuses eligible for businesses who ultimately hire these new staff.”