Small businesses are the backbone of our economy.

The Morrison Government is supporting them through the COVID recession, so they can rebuild and create jobs during the recovery.

PROTECTING BUSINESSES AND JOBS

In response to this crisis, the Morrison Government has committed unprecedented support for small businesses.

Over 1 million businesses and over 3.8 million workers were supported by the first phase of JobKeeper – the largest economic support program in Australia’s history.

Small businesses and their employees are also being supported through:

  • Cashflow Boost payments, which have provided $35 billion, helping over 800,000 small and medium businesses to stay afloat.
  • A 50% wage subsidy, supporting around 180,000 apprentices and trainees.
  • The HomeBuilder program, supporting the residential construction industry.

Small businesses are also supported by measures designed to boost economic activity, including: tax relief for workers, the Coronavirus Supplement, and $750 payments for millions of Australians, including pensioners.

SMALL BUSINESS TAX RELIEF

The tax rate for businesses with a turnover less than $50 million has been reduced from 30% to 26% – 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 13% (capped at $1,000). We have legislated a further increase to 16%.

HELPING SMALL BUSINESSES CREATE JOBS

A new JobMaker Hiring Credit will encourage businesses to hire younger Australians.

100,000 new apprenticeships and traineeships will be supported with a 50% wage subsidy for businesses who employ them.

This is in addition to the 180,000 existing apprenticeships and traineeships that are being protected.

The new JobTrainer fund will create up to 320,000 free or low-cost training places for school leavers and job seekers.

KICK STARTING INVESTMENT

The expanded Instant Asset Write Off will be available for small, medium and larger businesses with a turnover of up to $5 billion until June 2022.

For example, this means a trucking company can upgrade their fleet, a farmer can buy a new harvester, and a manufacturer can expand their production line.

Small businesses will buy, sell, deliver and install these assets.

ACCESS TO CREDIT

In March 2020 the Morrison Government invested up to $15 billion to enable smaller lenders to continue supporting small businesses and customers.

This complements the Reserve Bank’s $200 billion lending facility to help increase lending to businesses, especially small and medium businesses.

RED TAPE RELIEF

The Government has reduced costs for businesses, individuals and community groups with hundreds of decisions reducing red tape by around $5.8 billion.

We have simplified Business Activity Statements for 2.7 million small businesses.

A Small Business Superannuation Clearing House has been established for businesses with fewer than 20 employees, or less than $10 million annual turnover.

HELPING CASH FLOW

Since July 2019, the Government has been paying its bills within 20 days – and e-invoices within 5 days – for contracts up to $1 million.

HELPING THE CONSTRUCTION INDUSTRY

The Government’s HomeBuilder program is assisting the residential construction industry by encouraging Australians to build a new home or rebuild an existing one.

Construction businesses are also being supported by our 10 year infrastructure pipeline, which is already supporting around 100,000 jobs – and will support a further 40,000 jobs.

MORE EXPORT OPPORTUNITIES

Australia’s exports have grown from $306 billion in 2012-13 to $476.6 billion in 2019-20.

We’ve provided more opportunities for Australian exporters through landmark free trade agreements with Japan, Korea, China, Hong Kong, Indonesia and Peru, as well as the 11 nations of the Trans-Pacific Partnership.

We have reached agreement with 14 other Asia Pacific countries to finalise the Regional Comprehensive Economic Partnership.

Information current as at December 2020