Unincorporated businesses will get a five per cent tax cut up to $1000 for the financial year after another tranche of the government’s small business package was passed by parliament.
The tax cut was one of the measures announced in the 2015 budget and is part of a package that includes a $20,000 instant asset write-off for businesses with a turnover below $2 million.
It also included a tax cut for small companies from 30 per cent to 28.5 per cent.
But unincorporated businesses that don’t pay company tax weren’t captured in that measure and instead will benefit from the tax discount.
The government estimates that about 70 per cent of small businesses are unincorporated and the tax cut would help those entities improve cash flow while assisting with regulatory cost management.
Labor supported the measure, which cleared the Senate on Thursday.
The legislation also allows small businesses to immediately deduct start-up costs for expenditure incurred in the 2015/16 tax year.
The package will cost the government about $600 million annually.
AAP
Source: http://www.skynews.com.au/business/business/national/2015/08/13/5–tax-cut-for-small-business-passes.html