Western Australian business is celebrating tonight after Treasurer Scott Morrison announced ground-breaking cuts to Australia’s company and small business tax rates in the 2016 Federal Budget.
“With confidence in Western Australia at record lows, tonight’s Budget measures will be a much-needed shot in the arm to businesses and consumers,” said Chamber of Commerce and Industry of Western Australia (CCI) Chief Executive Officer Deidre Willmott.
From July 1, small businesses with a turnover of up to $10 million will be able to benefit from a lowered small business tax rate of 27.5 per cent – a significant win that CCI believes will directly benefit thousands of Western Australian businesses.
In a move that will stimulate investment and boost Australia’s global competitiveness, this turnover will be gradually increased to up $100 million in 2019-20, with the lower company tax rate to be extended to all businesses by 2023-24 before further reducing the rate to the OECD-average of 25 per cent, by 2026-27.
Ms Willmott said tonight’s ‘enterprise Budget’ will be a game-changer in creating jobs across Australia through allowing businesses to grow and attract investment.
“Western Australian business is delighted – in WA these measures will be transformative in boosting business confidence, stimulating investment and creating jobs for our future,” Ms Willmott said.
“Small businesses make up 97 per cent of all Western Australian businesses and employ 44 per cent of our workforce, so tonight’s Budget has proved a real win for what truly is the engine room of WA’s economy.
“The Chamber of Commerce and Industry of Western Australia has long called for a reduction in the company tax rate, which – as the Treasurer mentioned this evening – is the seventh highest company tax rate of the 34 OECD countries.
“The Federal Government’s 10 Year Enterprise Tax Plan will promote investment and innovation and elevate both Western Australia’s and Australia’s competitiveness on a global scale.”
Ms Willmott said Western Australian business also welcomed the Budget’s sensible saving measures that outline a clear path to budget repair.
“WA business welcomes the plan to reduce the deficit to $6 billion over the next four years – it is vital that Government lives within its means at a time when business has to do the same,” Ms Willmott said.
“CCI looks forward to studying the details of the initiatives outlined tonight and the implementation of the savings, growth and job creation measures.”
Media contact: Kate Hodges – 0448 928 227