Madam Speaker, I like so many of my colleagues, grew up in a small business family. That small business put a roof over our heads. It paid the bills. It gave all of the family a chance at a better life.
Small business is often a family business. A business of brothers and sisters, uncles and aunts, cousins, parents and children. And for those who work in a small business, who are not related, well they often become family.
Our future growth will come from growing small business into big business.
Every big company in the world started small. Every big idea in the world came from just one person, or a handful of people working together.
That is why tonight, I am announcing a package of measures that will make a genuine and permanent difference to small business in Australia. To start, every small business will get a tax cut. We are giving you back more of your own money.
From 1 July this year, small companies with annual turnover of less than $2 million will have their tax rate lowered, from 30 per cent to 28 and a half per cent. This is the lowest small business company tax rate in almost 50 years.
Most small businesses are not run as companies. So we will also give an annual 5 per cent tax discount of up to $1,000 a year for unincorporated businesses. We are the only Government that will deliver tax cuts for small business because we want small business to grow and employ more Australians.
But we recognise that small business, in order to succeed, needs better cash flow and better tools for innovation as well. So I announce, that from 7:30pm tonight, small business can claim an immediate tax deduction for each and every item they purchase up to $20,000.
From tonight, it can be instantly written off to reduce your tax liability.
And this will benefit the 96 per cent of Australian businesses – more than 2 million of them – that have a turnover of less than $2 million a year.
This will be of enormous benefit to their bottom line and help businesses with their cash flow. It means innovation. It means jobs. It means more money to invest and grow your business.
If you run a café, it might be new kitchen equipment, or new tables and chairs. If you’re a tradie, it might be new tools or a computer for the home office. Cars and vans, kitchens or machinery … anything under $20,000 is immediately 100 per cent tax deductible from tonight.
Source: Treasurer’s Budget speech
