Australia Eyes Tax Cut for Small Businesses
February 11, 2015 Taxation in Australia
CANBERRA – Small businesses in Australia may soon enjoy a small tax cut, as a proposal to ease the tax burdens for start-ups gains wide support in the Senate.
In a radio interview on February 11th the Treasurer of Australia Joe Hockey indicated that in the near future the government could enact a tax cut of 1.5 percent for small businesses.
According to the Treasurer, the tax cuts will not only ease the tax burdens faced by small businesses, which are the “heart and soul” of the economy, but also the tax reductions will encourage the growth of innovative start-up businesses.
The proposal to cut taxes for small and start-up companies already has the support of some opposition politicians in the national Senate, with the leader of the Green party already having come forward to say that her party would back any proposal to shift some tax burdens away from small businesses towards the country’s largest companies.
It is expected that if the government follows through with the current proposal to cut tax rates, the change will be officially announced in May, and some experts have already indicated that if approved, the cut may be large than the currently proposed 1.5 percent.
Photo By: Ben Hosking