Tax cuts may spell relief for Australian businesses
A recent announcement from the Australian government may signal relief for businesses and encourage commercial property investment across the nation.
Draft legislation to cut company tax from 30 per cent to 29 per cent for the 2013-14 tax year and for subsequent income years was released yesterday (March 14), in an effort to support growth in the Australian economy.
Small firms will be able to benefit from the tax cut in 2012-13, a move that the government says will assist up to 720,000 small business companies.
The relief may also allow small firms to more confidently handle expenses such as employee salaries and rental leases on their commercial retail property.
The statement released by the Treasury declared: "Cutting the company tax rate will increase productivity, promote broad-based economic growth and encourage more investment and jobs across Australia's entire economy."
The nation's mineral wealth has contributed to reduction in the corporate tax rate, as the rebate is being funded by super-profitable mining companies through the Minerals Resource Rent Tax.