More sole traders will see the benefits of incorporating their businesses under Labor’s plan to give small businesses the benefits of incorporation – which lower tax rates and improves liability protection.
Increasingly small businesses are moving towards becoming companies – allowing them to gain the legal protection of limited liability, promote asset protection, retain profits for working capital, succession planning and income distribution.
But currently, small businesses owners, who are often time-poor and face cash-flow challenges, are confronted with a hugely daunting and highly complex system in order to make this happen.
Labor will help small businesses to incorporate without additional red tape. Incorporation helps promote asset protection, retaining profits for working capital, access to CGT discounts, succession planning and income distribution.
Labor will improve Australia’s current complicated and expensive arrangements, with another stream of incorporation, one that provides a single, simplified structure, tailored for small business.
As the Australian economy transitions, the role of our small businesses as drivers of economic growth and prosperity has never been more important.
This is why Labor will work to help ease the burden on small businesses and allow them to grow and prosper.