3.2 million small and medium businesses in Australia will enjoy a lower tax rate to invest, grow and employ more. 

Small and medium businesses with turnovers of less than $50 million a year will benefit from this tax cut. 

“We know lower taxes means small businesses can grow, pursue new ideas and create more jobs,” Small Business Minister Michael McCormack said. 

“We have changed the definition of small business from an annual turnover of $2 million to $10 million, to make sure more Australians can take advance of the Government’s support for small business,” he added. 

This will affect over 6.5 million Australians, who are employed in small and medium businesses and their families. 

Moreover, 2.3 million unincorporated businesses will also benefit from these changes. 
“We have dropped the tax rate to 27.5 per cent and expanded the unincorporated tax discount to eight per cent,” Minister McCormack said. 

This is to increase the employment rate, wages and job opportunity. 

The 27.5 per cent cut of tax will be in action from this financial year. 

Further, the introduction of the new Diverted Profits Tax will ensure multinational companies pay their share of tax, making tax for small and medium businesses as low as possible.