Leak reveals government plan to bring forward small business tax cuts and change $20,000 instant asset write-off
The federal government is seeking to bring tax cuts aimed at Australia’s small and medium businesses into effect four years earlier than originally planned, costing the government $3.6 billion over four-year forward estimates.
Treasury costings leaked to Fairfax reportedly reveal the government has decided to adopt industry calls to bring forward the already legislated tax cuts for companies with under $50 million in annual turnover, which would see them fully implemented by 2022 rather than 2026. The documents also reveal it’s considering extending the popular $20,000 instant asset write-off threshold.
The government’s original enterprise tax cut plan, the first phase of which was passed early last year, initially planned to drop the corporate tax rate for SMEs from 30% to 25% over a 10-year period, with the first drop to 27.5% coming into effect this financial year, before a staggered drop to 25% by 2026-27.
However, the leaked costings reportedly show the government is considering bringing in a drop to 27% in the next financial year, followed by a reduction to 26% in 2020-21 and then a further cut to 25% in 2021-22. Read more
Dominic Powell - SmartCompany - 5 September 2018