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31 March 2017

Tax cut a vote of confidence in small business and jobs

The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell welcomed the Senate passing tax cuts for businesses with a turnover of up to $50 million, which will deliver a boost to small and medium-sized businesses across Australia.

She said the tax cut was a vote of confidence in small to medium business’ role as the economy’s engine room in driving jobs growth.

Ms Carnell said: “Businesses with a turnover of up to $50 million will now be in a better position to grow their business and, importantly, employ more people.

“Confidence is everything in small business. Confidence leads to growth, which in turn leads to more jobs; more jobs for school leavers, more jobs for working parents, more jobs for older Australians.”

Ms Carnell said lowering the company tax rate would achieve two primary objectives. 

“First and foremost, it creates an opportunity for thousands of SMEs to invest and expand their enterprise. Secondly, it sets out a challenge for the sector to harness the possibilities that are now in front of them and seize the chance to innovate and employ, which benefits everyone,” she said.

“Owning and operating a small business can be hard – I should know, I did it for many years – so I speak from experience when I say business owners won't pocket the savings from the tax break.

“They will reinvest it by spending it on new plant and equipment or they will hire that extra employee they so desperately need.”

The ASBFEO’s Small Business Counts report released this week includes ATO figures showing the small business share of company tax revenue increasing by two percentage points in recent years compared to a three percentage point fall for big business.

Ms Carnell said: “I congratulate the Coalition and cross-bench Senators for supporting a tax cut and recognising that a healthy SME sector is an essential basis for a growing economy with high employment opportunities.”