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27 June 2018

Majority of small business owners to benefit from 1 July tax cuts

The majority of Australian small businesses - 83.7% with a taxable income of under $100,000 - will benefit from the first tranche of the recently legislated income tax cut package, the Australian Small Business and Family Enterprise Ombudsman, Kate Carnell said today.

“From 1 July, anyone earning between $19,000 and $90,000 will receive a personal tax cut.

“This means the owners of 1.3 million unincorporated businesses will directly benefit from this new legislation, because they don’t pay company tax.

“This is a very welcome big deal for the majority of small business owners in Australia.

“Around 80% of unincorporated small business owners in Australia – self-employed people – earn below $25,000 and up to $90,000. They don’t pay company tax so a reduction in personal income tax makes a difference.

“And a very large proportion of these unincorporated small businesses are owned by women, which is an added bonus.”