Henry Review - Tax Cuts for Small Businesses to 28%

You can see more posts here ==> Henry Tax Review Posts
The Henry review of Australia's taxation system was released today with good news for small businesses.

Included in today's media release (2 May 2010) is a phased cut in the company tax rate to 28 per cent, intended to assist the competitiveness of all Australian industries. The Government will also seek to cut the company tax rate further, as revenue allows., together with the following measures for small business to commence for the tax year 2012-13 - still two years off yet.
  • Small businesses will get a head start on the company tax cut, with the 28 per cent rate applying from 2012‑13. 
  •  Small businesses will benefit from a new instant write‑off for assets worth up to $5,000. Depreciation for other assets will be simplified, reducing complexity, cutting red tape and providing up front tax relief. 
For more details on cut to company tax rates for small busiensses see this FREE fact sheet ==> Early Start to Company Tax Rate Cut For Small Business Companies.

For more details on depreciaon write-off for asses up to $5000, see this FREE fact sheet ==>  Small Business Instant Asset Write-off.

These measures will have a significant impact on small business, both in the amount of tax paid and reducing complexities in the depreciation provisions.

Mr Swan said "Today we have announced that the first wave of our agenda is to reform resource, company and small business taxes and superannuation. In the coming months we will have more to say on a number of other areas considered by the review, especially making tax time simpler for everyday Australians, improving incentives to save and improving the governance and transparency of the tax system. This would represent a full second term agenda.

Other recommendations in the review are not government policy. We have called for a mature tax debate and expect the other recommendations to be the subject of much discussion in the coming years.

By David Maynard

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