Response to Henry Tax Review benefits small business, says DeloitteDOWNLOAD
Sunday, 2 May 2010: The Federal Government has announced today that SMEs will benefit from a lower corporate tax rate of 28% and an immediate tax deduction for assets costing less than $5,000. Both measures will commence from 1 July 2012.
According to professional services firm Deloitte, small businesses will welcome these measures and will also look forward to further announcements from the Government.
Interestingly small business will benefit from the corporate tax rate reduction earlier than the rest of corporate Australia for whom the tax rate will reduce to 29% on 1 July 2013 and to 28% on 1 July 2014.
The Henry Review has recommended that the corporate tax rate be reduced to 25% over time.
“Companies would welcome further tax relief as it has been recognised in the Henry Review that Australia’s corporate tax rate is currently too high when compared to other similar sized OECD countries”, said Deloitte Tax Partner David Pring.
The Henry Tax Review has recommended further small business concessions for which the Government is yet to announce its response. These measures are:
”Small Business will welcome further announcements in this regard as they will assist in reducing tax complexity and increase fairness. For instance, allowing the carry back of tax losses would be extremely beneficial to SMEs as it would allow them to obtain cash refunds of tax already paid to the Tax Office,” added Deloitte Private Tax partner Spyros Kotsopoulos.