Tax cuts to benefit small and medium electrical contractors
The government has secured a cut to the company tax for small and medium Australian businesses.
The move will benefit around 3.2 million small and medium Australian businesses, employing over 6.5 million workers.
Companies with a turnover of less than $10 million will receive a 2.5% reduction in their tax rate, from 30% to 27.5%, this financial year. The cut will be extended to business with a turnover of less than $25 million in 2017–18 and up to $50 million in 2018–19.
The National Electrical and Communications Association welcomed the cuts.
“NECA welcomes these company tax cuts as a win for the electrical contracting sector — an industry where up to 90% of businesses fall into the small and medium-sized business category,” said NECA CEO Suresh Manickam.
“Company tax reduction is a critical step to assisting the growth and competitiveness of our industry, allowing our businesses to create additional employment opportunities. NECA has been on the record, calling upon the government to set a guidance and future strategy for the Henry Tax Review recommendation to reduce the company tax rate to just 25%.
“We are very pleased with last week’s outcome in the Senate. We commend those who were willing to work together in order to improve the lot of Australia’s electrical contractors — particularly Senator Cormann, the Minister for Finance, who led the negotiations. This is a true win for our industry,” said Manickam.
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