Industry group Master Builders Australia has welcomed the Federal Government's decision to fast track tax relief for SMEs, noting that more than 370,000 building businesses will benefit from the move.
“This is great news for builders, including the many who are sole traders, and the economy,” says Denita Wawn, CEO of Master Builders Australia.
“We have more small businesses in building and construction than any other sector of the economy and this is a heartland issue for Master Builders. We have been very direct in calling for greater tax relief for these businesses and the government's move is absolutely the right thing."
Businesses with a turnover below $50 million will be subjected to a tax rate of 25 percent as early as 2021-2022, rather than the planned introduction set for 2026-2067. The current small business tax rate is 27.5 percent.
Wawn says that the quicker tax relief will motivate industry players to invest more in their businesses including plant and equipment and training, engage more tradies and train more apprentices.
“SME tax relief is a no-brainer, which will be strongly supported by small builders and tradies around the country. We call on everyone in the Parliament to back the legislation when it’s introduced,” adds Wawn.
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