It’s not often we see agreement on both sides of the political stage.
But yesterday, Bill Shorten announced that Labor would support the Coalition’s plan to fast-track tax relief — cutting tax rates for small and medium-sized businesses five years earlier than anticipated.
The tax rate has already been reduced from 30% to 27.5% and was on track to drop to 25% by July 2026 before receiving such welcome news. It will benefit over three million businesses and seven million employees Australia-wide.
To put these numbers into perspective, a business that makes $500,000 a year would be able to keep an extra $12,500 by the time the tax plan is fully implemented in 2021.
It comes as a win for Morrison’s government. Not only will these fast-tracked cuts aid small businesses, but they could see them hiring more people and increasing wages and bonuses. Additionally, with the extra cash, the Federal Government hopes to see those with this new-found freedom investing more in their businesses.
Scott Morrison said the decision was made to ‘to reward working Australians who have seen it tough’.
And after crunching the numbers, Mr Shorten agreed that it’s a win/win situation for the Australian public.
‘…if they vote Labor they’ll be getting the same tax reductions as they would if they voted Liberal.’
Now, if only Labor would get on board and support the government’s tax cuts to all businesses, we could see results like the tremendous boom in the US this year.
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