Small Business and Family Enterprise Ombudsman Kate Carnell says the 83 per cent of Australian small businesses turning over less than $90,000 in taxable are set to benefit from the first tranche of income tax cuts which will go into force from July 1.
“From 1 July, anyone earning between $19,000 and $90,000 will receive a personal tax cut, Carnell said.
“This means the owners of 1.3 million unincorporated businesses will directly benefit from this new legislation because they don’t pay company tax.
Carnell said the news will be welcomed by many self-employed people, solopreneurs and women in business.
“Around 80% of unincorporated small business owners in Australia – self-employed people– earn below $25,000 and up to $90,000. They don’t pay company tax so a reduction in personal income tax makes a difference.
“And a very large proportion of these unincorporated small businesses are owned by women, which is an added bonus,” Carnell said.