In a joint announcement by Prime Minister Scott Morrison and Treasurer Josh Frydenberg, they said businesses with a turnover below $50 million will face a tax rate of just 25 per cent in 2021-22 rather than from 2026-27 as currently legislated.
Further, they said similar timing changes will apply to the roll out of the 16 per cent tax discount for unincorporated businesses.
The government said it will introduce legislation during the next session of Parliament.
“This builds on the first stage of company tax relief that our government delivered in May 2017, because we believe in a fair go for those who have a go – that’s what our tax plan is all about,” Mr Frydenberg said.
“This change will help to ensure Australian businesses are competitive, to protect our economy and jobs.
“Our economic plan is working and the fast tracking of tax relief for small and medium businesses is an important investment in the future economic growth of our nation.”
