More than 17,000 small and medium-sized businesses in the Northern Territory will receive tax cuts so they can grow and employ more people as a result of the Coalition Government’s visionary Enterprise Tax Plan.
“These historic cuts will allow 17,465 businesses in the Northern Territory – from the local butcher, to the local newsagent and local pub – to keep more of the money they earn to invest and grow so they can employ more people,” Country Liberals Senator for the Northern Territory, Nigel Scullion, said.
“Under our plan, Territory businesses with turnovers up to $10 million are now defined as small businesses and will pay a lower company tax rate of 27.5 per cent from this financial year, before eventually falling to 25 per cent.
“Unincorporated businesses with turnovers up to $5 million will also benefit, with the unincorporated tax discount increasing to 8 per cent from this financial year, before increasing to 16 per cent over the next decade, capped at $1000.”
Senator Scullion said the 27.5 per cent company tax rate delivered the lowest tax rate for small business in 50 years.
“Once the Enterprise Tax Plan is fully delivered, it will permanently increase the size of the economy by 1.2 per cent of GDP – that’s more than $17 billion in today’s dollars every single year,” Senator Scullion said.
“More than 3.2 million small and medium-sized businesses employing 6.5 million people across the nation will benefit from cutting the tax rate. That is more than half of the Australian workforce.
“Cutting the tax rate is critical to growing the national economy because seven out of eight people are employed by private enterprise.
“The Coalition Government has delivered on all the tax cuts which were promised during this term of government – inside the first year of the term.”