Small and medium-sized businesses, gin and beer brewers, and owner of granny flats will participate in a series of tax cuts starting in the new fiscal year as millions of workers increase their pension balance sheets.
Starting July 1, the corporate tax rate for companies with sales less than $ 50 million will be reduced from 26 percent to 25 percent. It marks the end of a five-year series of cuts that keep the country’s largest – and largest taxpaying companies – at the old 30 percent rate.
Small breweries and distilleries will be exempt from excise duty under a series of tax changes starting in the new fiscal year.
For sole proprietorships and other small businesses with no legal personality, the tax rebate will be increased from 13 percent to 16 percent up to the existing cap of US $ 1,000.
The government’s temporary full cost and loss repatriation measures will continue into the new fiscal year, allowing companies to withdraw the full cost of depreciable assets by mid-2023.
The full extension of the spending will cost the federal budget $ 17.9 billion over the next three years, but Treasurer Josh Frydenberg said this move alone will add $ 7.5 billion to GDP for fiscal year 2021-22 Would create 60,000 jobs.
Small brewers and distilleries will have access to a new excise duty waiver system from Thursday. They will be completely waived of any excise taxes they pay up to a cap of $ 350,000, which will cost the budget $ 225 million over the next four years.
In a policy aimed at older people who want to live close to family or friends, granny flats are exempt from capital gains tax if there is a formal agreement to provide housing.
The new housing data released by CoreLogic on Thursday is expected to show property values up another 1.9 percent in our major capitals, led by a 2.6 percent increase in Sydney.