SME Tax Cuts

SME Tax Cuts

SMEs to enjoy lower taxes from Wednesday.

Australian SMEs earning up to $50 million a year will enjoy a 26 per cent tax rate from tomorrow, with the government’s fast-tracked tax cuts for small companies due to come into effect on 1 July.

From tomorrow, the small business tax rate will be reduced from 27.5 per cent to 26 per cent for businesses with a turnover of less than $50 million, before dropping further to 25 per cent from the 2021–22 income year.

Prime Minister Scott Morrison and Treasurer Josh Frydenberg said the change “will help to ensure Australian businesses are competitive to protect our economy and jobs”.

Given the recent coronavirus-induced pressures, the government is expected to do more to help hundreds of thousands of businesses recover.