Monday 10 April 2017

Senator Linda Reynolds last week welcomed Minister for Environment and Energy Josh Frydenberg to Burt to hear how local small businesses will benefit from the Government’s Ten Year Enterprise Tax Plan.
“Most of the businesses in Armadale and Gosnells are small businesses and most are owned by locals,” Senator Reynolds said.
“Reducing the tax burden on small and medium businesses gives these hardworking business owners the chance to grow, to hire more locals and to pay them more.
“This will benefit the whole community because the Government understands that when taxes are lower for small and medium businesses, that money is reinvested in expanding a businesses, hiring more people, giving them more hours of work and paying them more – not put in a business’ back pocket.”
Business Armadale president and Gosnells small business owner Wayne Nurse said lower taxes for small businesses would benefit the entire Armadale region.
“The tax cuts will release money into the economy straight away,” he said.
“For the Armadale region that will mean additional money in the local economy, whether it’s spent on more employment, capital infrastructure, or simply increases in personal spending of the owners – either way we will see a significant injection into the local economy that is vitally important at this time.”
Armadale business owner Paul Harrison said the Government’s Ten Year Enterprise Tax Plan would allow businesses such as his to expand.
“We think the tax break is awesome and allows small and medium businesses to use the savings to employ more people, buy capital items and invest in their businesses,” he said.
Under the Coalition Government’s plan, businesses with turnovers up to $10 million are now defined as small businesses and will pay a lower company tax rate of 27.5% from this financial year, before eventually falling to 25%.
This will extend to businesses with a turnover of up to $25 million from July 1 and to businesses with a turnover of up to $50 million from July next year.
Unincorporated businesses with turnovers up to $5 million will also benefit, with the unincorporated tax discount increasing to 8% from this financial year, before increasing to 16% over the next decade, capped at $1,000.
Senator Reynolds said the 27.5% company tax rate delivered the lowest tax rate for small businesses in 50 years.
“The Government’s Enterprise Tax Plan also means more small business can instantly write-off new equipment worth up to $20,000 and claim it back straight away,” she said.

Media contact: Office of Senator Reynolds – Amy Blom 9368 6633 or amy.blom@aph.gov.au