Small businesses make a huge contribution to national prosperity and supporting Australian jobs. Small businesses play a central role in the economy. Over 2 million businesses – sole traders, partnerships, trusts and small employers – have helped underpin 25 years of economic growth.
Labor stands for helping our small businesses succeed in a competitive global economy.
That’s why Labor has committed to a reduction in the small business company tax rate providing there is bi-partisan support from the coalition and that it is conducted in a fiscally responsible fashion.
Labor supported the cut in the company tax rate for small businesses to 28.5% and will support the further cut to 27.5% proposed in the 2016 Budget. This will cover small businesses representing 83 per cent of Australian companies.
Billion dollar operations are not small businesses and so Labor will not proceed with the Government’s company tax to 25 per cent and plan to extend the small business threshold to $10 million and beyond.
According to preliminary estimates from the independent Parliamentary Budget Office, this proposal will improve the Budget by $49 billion over the decade.
Labor did not support the Government’s abolition of Labor's original instant asset write-off in the 2014 Budget. Labor did support its restoration in the 2015 Budget.