Small business benefits from 2016 Federal Budget

Melbourne, 4 May – The Victorian Automobile Chamber of Commerce (VACC) has welcomed the business-boosting
measures announced last night in the 2016 Federal Budget.

Treasurer, Scott Morrison’s suite of company tax rate cuts will benefit all Australian businesses, especially
small-to-medium enterprises (SMEs), which will receive tax relief first. 

Company tax rate changes for SMEs will begin almost immediately and will fall from the current rate of 28.5 per cent
to 27.5 per cent from 1 July this year. From 2024 the rate will be cut to 27.0 per cent and fall one per cent
for each of the following two years.

The long-term plan is to achieve a 25 per cent company tax rate for all Australian businesses by the 2026/27 financial year.

“The Turnbull Government’s 2016 Budget announcement of tax rate cuts will be good for business and good
for the economy. That means it’s good for everyone,” VACC Executive Director, Geoff Gwilym, said.

“A lower company tax rate will encourage entrepreneurs to enter the business environment and enable existing companies
to employ more workers over time. That’s a great win for all Australians.”

The reduction in company tax rate is doubly good news for Victorian small business in light of the State Government’s
announcement that it is to raise the payroll tax threshold. 

Other positive 2016 Budget announcements included modest income tax cuts to address bracket creep, keeping
Australians who currently earn more than $80,000 from moving into the second-highest personal income tax rate by
raising the threshold to $87,000 from 1 July.

“It is good to see that the government is also simplifying BAS reporting requirements for small businesses with less than
$10 million turnover,” Mr Gwilym, said.

“VACC sees the 2016 Budget as being beneficial for small automotive businesses. Some of the measures announced
by Treasurer Morrison reward business owners and incentivise them to employ more workers. This will have a positive
flow-on effect all over the state.”

VACC is Victoria's peak automotive body with 5,000 members.

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VACC Executive Director, Geoff Gwilym
VACC Executive Director, Geoff Gwilym, says the company tax cuts will help small businesses grow and employ more staff