Matthew Canavan (Queensland, Liberal National Party, Minister for Resources and Northern Australia) Share this | Hansard source

I move:

That this bill be read a second time.

I seek leave to have the second reading speech incorporated in Hansard.

Leave granted.

The speech read as follows—

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 three million small and medium businesses which employ around seven million Australian workers.

It will bring forward by five years already legislated tax cuts for small to medium companies and un-incorporated 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 size 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 8 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 reductions in the tax rate 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 older Australians.

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.

Providing small and medium businesses a lower tax rate sooner will allow them to drive further economic growth, hire more workers and ultimately pay higher wages.

Full details of the measure are contained in the explanatory memorandum.

Debate adjourned.

Ordered that the resumption of the debate be made an order of the day for a later hour.