Stuart Robert (Fadden, Liberal Party, Assistant Treasurer) Share this | Hansard source

Let me thank those members who've contributed to the debate. The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 will bring forward the small and medium company tax reduction to 25 per cent, delivering on the government's commitment to reduce taxes for these businesses around five years earlier. In line with the cuts in the company tax rate, the bill will also bring forward the already legislated increase in the unincorporated small business tax discount rate for unincorporated small businesses with an aggregated turnover of below $5 million. Passing the bill will help businesses by providing certainty about the tax consequences of their investment decisions. Over three million small and medium businesses stand to benefit from these tax cuts. These businesses employ around seven million Australians. Companies with a turnover below $50 million will enjoy a company tax rate reduction to 25 per cent on an accelerated time frame, with a 26 per cent rate in 2020-21 and a 25 per cent in 2021-22. For unincorporated small businesses with an aggregated turnover below $5 million, the increase in the unincorporated small business tax discount rate will be brought forward. The unincorporated small business tax discount rate rises from eight per cent to 13 per cent in 2020-21 and then again to 16 per cent from 2021-22. I commend this outstanding bill to the House.

Question agreed to, Mr Wilkie dissenting.

Bill read a second time.

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