Tax cuts handled down in the 2016 Federal Budget have been largely welcomed by small…
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Small businesses are counting on tax cuts says Kate Carnell, the Australian Small Business and Family Enterprise Ombudsman (ASBFEO), and the legislation needs to be made a priority in the new parliament.
With the Government’s Enterprise Tax Plan Bill expected to be introduced into parliament today, Carnell said it was important that the tax breaks for small businesses with a turnover of up to $10 million, come to fruition as soon as possible.
“Politicians on all sides are quite rightly arguing the case for immediate action on reducing debt and deficit levels. An important element of this budget repair is empowering small businesses to generate much needed economic growth through tax breaks that allow them to re-invest and grow their business,” Ms Carnell said.
“I’ve spoken to countless small business owners about the tax cuts; they all plan to put the money they save back into their business, not into their back-pockets.”
“That means new plant and equipment, that means greater innovation and expansion; basically it means small businesses will have the confidence to take a look at their enterprise and identify areas of potential growth that will help drive economic activity at a grass-roots level,” Ms Carnell said.
Carnell said this measure, together with the increased tax discount for unincorporated small businesses, would empower business owners to take on extra staff.
“More and more we’re seeing big businesses down-sizing or outsourcing; it’s the small-to-medium-sized enterprises that are creating new employment opportunities. And when you consider there’s close to three million SMEs in Australia, imagine if just a quarter of them took on a new worker; the social and economic impact would be game-changing.”
“So often, small businesses are described as the engine room of the economy; this is certainly true, and if our politicians are truly serious about getting the engine room firing on all cylinders, they’ll unite on this important measure and pass the small business tax cuts into law as soon as possible,” she said.