Josh Frydenberg (Kooyong, Liberal Party, Treasurer) Share this | Hansard source

I move:

That this bill be now read a second time.

The Treasury Laws Amendment (Lower Taxes for Small and Medium Businesses) Bill 2018 will provide further tax relief for small and medium businesses in Australia.

This bill will continue our work of delivering a stronger economy and supporting the more than three million small and medium businesses employing around seven million Australian workers.

It will bring forward by five years already legislated tax cuts for small to medium companies and unincorporated businesses.

Under schedule 1 of this bill, companies with a turnover of up to $50 million will benefit from the tax rate being reduced from the current rate of 27.5 per cent to 26 per cent in 2020-21 and 25 per cent in 2021-22 and subsequent years.

This will benefit around 940,000 small to medium-sized companies (with turnover of up to $50 million), employing around 4.8 million Australians.

Schedule 2 of this bill will provide an enhanced tax discount for sole traders and other unincorporated businesses which have a turnover of up to $5 million. The unincorporated tax discount will increase from its current rate of eight per cent to a 13 per cent discount in 2020-21 and to 16 per cent in 2021-22.

This will benefit around 2.35 million unincorporated businesses (with turnover of up to $5 million), employing around 1.8 million Australians.

Schedules 1 and 2 bring forward the final tax rates by five years. This acceleration of tax relief will allow these small and medium businesses to plan on the basis of the new tax rates and realise the corresponding benefits earlier.

This bill is an investment in Australia. It is part of our plan that is delivering a stronger economy.

We believe in the more than three million small to medium businesses in Australia employing seven million workers.

Reducing their taxes will allow them to invest, grow and hire more Australians.

Since the coalition came to office, more than one million jobs have been created, including more women, more young Australians and more older Australians in work.

In the last financial year, more than 100,000 young Australians got a job—the largest number on record.

This is a great outcome and is an example of the real impact of a stronger economy and good macroeconomic policies that are being introduced and led by the coalition government.

We cannot be complacent when it comes to the economy, and this bill will ensure that small and medium businesses can continue to drive further economic growth and job creation.

Full details of the measure are contained in the explanatory memorandum, and I have no hesitation in commending this bill to the House.

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