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New economic modelling shows that cutting the small business company tax rate from 25% to 20% could boost GDP by up to $11.4 billion and create over 3,300 permanent jobs. According to the Council of Small Business Organisations Australia (COSBOA), the modelling finds the tax cut would increase cash flow, investment, wages and employment, while also delivering a strong return on public investment – as much as $10 in economic benefit for every $1 of foregone tax revenue. COSBOA chief executive Luke Achterstraat said the reform would be fiscally prudent, targeted and would produce a growth dividend in uncertain economic times. “Moreover, this is good economic policy because it addresses a significant burden on small business – especially after the GFC and Covid periods: it improves access to cash flow and credit on reasonable terms.” He added that this tax cut reform was a practical and immediate way to support the small business sector, which accounts for nearly 98% of all Australian businesses.
#accountant #tax #smallbusiness |