Small business is the backbone of our economy.
We are backing small businesses to help them get ahead and create jobs.
SMALL BUSINESS TAX CUTS
The tax rate for businesses with a turnover less than $50 million has been reduced from 30% to 27.5% - the lowest rate in 50 years. We will be further reducing this to 25%.
For unincorporated businesses with a turnover less than $5 million, we have introduced a tax discount of 8% (capped at $1,000). We have legislated a further increase to 16%.
We recently fast tracked this tax relief, so the full benefit is delivered by 2021-22, five years earlier than planned.
These changes will benefit 3.3 million businesses employing around 7 million Australians, helping them to invest and create more jobs.
INSTANT ASSET WRITE-OFF
The Government has provided an instant asset write-off for small businesses (with a turnover less than $10 million) until 30 June 2020.
This means small businesses can instantly deduct each and every asset under $25,000.*
In 2016-17, almost 350,000 small businesses accessed this to invest in machinery and equipment to help grow their business.
*Subject to the passage of legislation
RED TAPE RELIEF
Compliance costs have been reduced for businesses, individuals and community groups by nearly $6 billion since 2013.
This includes simplified Business Activity Statements for 2.7 million small businesses, doubling of ASIC financial reporting thresholds reducing the burden on 2,200 companies, a Small Business Superannuation Clearing House and hundreds of other decisions that are making life easier.
To help reduce state government red tape, the Government will pay up to $300 million to states and territories that reduce the regulatory burden on small business.
HELPING CASH FLOW
The Government recognises the importance of cash flow for small businesses. That’s why the Government is setting an example by paying its bills on time.
Over 97% of Australian Government bills under $1 million are being paid within 30 days.
From July 2019, the Government will be required to pay invoices for contract work up to $1 million within 20 days.
We will also require large businesses seeking to tender for government contracts to match this policy.
Small businesses are getting a fair go, through:
- Amendments to Competition Law (‘Section 46’) to stop big businesses abusing market power.
- New unfair contract legislation.
- The establishment of the Australian Financial Complaints Authority to ensure small businesses have access to free, fast and binding dispute resolution.
- Combatting illegal phoenixing activities.
- The establishment of a Small Business Ombudsman.
HELPING CRAFT BREWERS AND DISTILLERS
Around 380 Craft brewers and 100 distillers will now be able to compete on fairer terms with larger companies.
We are increasing the amount beverage companies can claim back on their excise (from $30,000 a year to $100,000) and extending the concessional draught beer excise rate to smaller kegs, typically used by craft brewers.
This means craft brewers will no longer be paying 40% more for using smaller kegs.
The Government is investing $20 million in Small and Medium Enterprise Export Hubs. The hubs will help SMEs work together to develop brands and connect with new markets and global supply chains.
Australia’s exports reached $401 billion in 2017-18, up from $307 billion in 2012-13.
Our landmark agreements with China, Japan and South Korea will generate more export opportunities for Australian agriculture, mining, manufacturing and service industries.
We have completed negotiations for new agreements with Peru and Indonesia.
Australian exporters will also benefit from the new Trans-Pacific Partnership – an Agreement between 11 major economies in our region (worth $13.7 trillion).
PROTECTION FROM UNION THUGGERY
By restoring the Australian Building and Construction Commission, we are protecting 1.1 million employees and 350,000 small construction businesses from CFMMEU thuggery.
By abolishing the (so-called) Road Safety Remuneration Tribunal established by Bill Shorten in 2012, we saved 35,000 owner-operator truck drivers from a hostile union takeover.
We will stand up to radical union leaders, who are demanding more power to strike, run businesses and inspect their books.
Under Labor, union law breakers will become law makers.
LABOR’S WAR ON SMALL BUSINESS
Labor repeatedly voted against tax relief for small businesses.
Labor’s new tax on trusts will hit at least 200,000 small businesses.
Labor’s energy policies – including a 50% renewable target and 45% emissions target – would increase power bills for small businesses.
Labor wants to reverse the independent umpire’s decision to modify Sunday penalty rates. This means small businesses would pay higher rates than big businesses that do deals with unions (enterprise agreements).
Labor will roll over to their union masters, who will demand more power to strike and run businesses. Under Labor, union law breakers will become law makers.
Information current as at November 2018