Backing Small and Medium Businesses on the Coast with Fast-tracked Tax Relief
Thanks Deputy Speaker and I rise in support of this important bill, the Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018. This bill is going to mean that for fifteen thousand and fifteen small and medium businesses in my electorate of Robertson on the Central Coast, they will pay less tax – sooner.
With this legislation our Government is delivering tax relief for small and medium business five years earlier. We’re fast-tracking cuts, meaning that businesses with a turnover of below $50 million will benefit from a reduced company tax rate of twenty five per cent in the financial year 2021-2022 rather than the originally planned 2026-2027.
Our businesses are the backbone of our local economy and the success of small and family businesses in our community helps build a strong national economy. This Government knows that without a strong economy, you cannot guarantee the essential services that Australians rely on. It is why we’re so focused on delivering an even stronger economy because it’s a strong economy that guarantees investments in education, healthcare and the NDIS.
In line with the fast-tracking of company tax relief, we are also bringing forward the changes to the unincorporated small business tax discount. This measure is set to benefit around 2.35 million unincorporated businesses across the country including sole traders with turnover of up to $5 million. As the Central Coast Express Advocate reported last week, about 2,000 women on the Central Coast are juggling a small unincorporated business with their family life. These ‘mumpreneurs’ are giving it a go, juggling work and family life and these changes will mean that local unincorporated small businesses will now be able to access the maximum discount of $1,000, five years sooner.
So many families, mums and dads on the Central Coast operate small businesses or work in a small business and I’m proud to be part of a Government that is delivering tax relief for these businesses and their workers, a Government that is saying to local businesses that are having a go - ‘we’re on your side’.
We’re backing business that have been giving it a go and getting ahead on the Central Coast and the Prime Minister visited last week to meet with just two of more than fifteen thousand small and family businesses on the Central Coast. It was a pleasure to be able to share with the Prime Minister some of the local success stories – business having a go and succeeding on the Central Coast.
Businesses like Six Strings Brewing Company in Erina, a locally owned and operated craft brewery. Six Strings produces a number of craft beers as well as cider and lemonade that are stocked in restaurants, bars and supermarkets across Australia. They employ 15 Central Coast residents and since opening 5 years ago they have been growing year on year. Six Strings are already benefitting from the measures that this Government has implemented including the instant asset write off and changes to the alcohol excise that puts brewers and distillers on a level playing field. This bill adds to these measures and will mean that owners Chris and Ryan can continue to grow their business, continue to invest in new equipment and expand their team.
It’s the same for Kombcuha Zest at West Gosford, a business that employs 11 people from our community and distributes Kombucha to cafes and restaurants around the country. Since starting 3 years ago, Nathan has seen his business grow exponentially and said that as a new business, profits are always being reinvested back into the business to continuing growing. For Kombucha Zest, the tax relief delivered sooner means they will keep more of what they earn and can invest even more back into the business.
For Bambi a leading bedding manufacturer with a 30 year history on the Central Coast the measures in this bill will mean that they can continue to develop into international markets and remain competitive. Bambi is a family business that has big dreams and aspirations, working to compete with imported products and championing Australian manufacturing and I look forward to seeing them grow from strength to strength.
These are the stories of just some of the local businesses on the Central Coast and I’m looking forward to meeting more business owners and hearing their stories over the coming weeks.
This is building on our already legislated tax plan and our plan is about making sure that Australians and Australian businesses that have a go, get a fair go.
Deputy Speaker, this Government’s economic plan is working and I’m proud to be part of a team that is investing in the future growth of our economy by backing small and medium businesses – the backbone of our economy – and I commend this bill to the house.
Making things happen for Robertson