20,000 Australian businesses to get additional tax relief

CANBERRA, Oct. 2 (Xinhua) — The Australian government has announced further tax exemptions for small and medium businesses in an attempt to create jobs and accelerate the nation’s economic recovery.

Treasurer Josh Frydenberg on Friday revealed that the federal budget for financial year 2020/21, which he will hand down on Tuesday, will include tax concessions for an additional 20,000 businesses.

Under the plan, businesses with annual turnovers between $10 million Australian dollars ($7.1 million U.S. dollars) and $50 million Australian dollars ($35.8 million U.S. dollars) will gain access to 10 tax concessions currently only available to small businesses.

Businesses will also be able to claim start-up expenses as a tax deduction.

Frydenberg said that the changes would provide “further tax relief to attract and retain workers and reduce red tape.”

“We know that the pathway to recovery is not through higher taxes but through a more competitive and efficient tax system that supports jobs and promotes investment,” he told News Corp Australia.

“Enabling small businesses to keep more of what they earn means they can keep operating, pay their bills and retain or hire more staff.”

The announcement came as Ben Morton, the assistant minister to the prime minister, delivered a pre-budget speech to the Business Council of Australia (BCA) in which he promised urgent streamlining of government services to save businesses $100 million Australian dollars ($71 million U.S. dollars) in transaction costs by 2030.

Morton, the head of the Prime Minister Scott Morrison’s deregulation taskforce, told the powerful business lobby that “bad regulation is a job killer with no redeeming features.”

“It inhibits consumer choice, business innovation and investment, and jobs growth,” he said.

“The approach that I take is that, where regulation is required, it must be fit for purpose and lightest touch.”

Published at Fri, 02 Oct 2020 14:03:15 +0000

Source: 20,000 Australian businesses to get additional tax relief.

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