Small businesses are the backbone of our economy and the key to Australia’s economic recovery.
To protect jobs and our economy, small business has been a primary focus during the pandemic.
This has included JobKeeper, Cashflow Boost payments, 50% wage subsidies for apprentices and the HomeBuilder program.
This year, Australia was the first advanced country to have more people employed than pre-COVID.
The Morrison Government will continue to support small business and encourage jobs, as we secure our economy recovery.
SMALL BUSINESS TAX RELIEF
In 2021-22, the tax rate for businesses (with a turnover less than $50 million) has been reduced to 25% – the lowest rate in 50 years.
For unincorporated businesses (turnover less than $5 million), the tax offset will increase from 13% to 16% (capped at $1,000).
Since 2017, the rate of company tax for small businesses has reduced from 30%.
The Morrison Government’s small business tax relief is supporting 3.4 million small businesses employing over 7 million Australians.
HELPING SMALL BUSINESSES CREATE JOBS
The Morrison Government is supporting small businesses that are creating jobs and investing in skills.
50% wage subsidies will support a further 170,000 new apprenticeships and traineeships.
This builds on the 100,000 new apprenticeships already supported.
The recent Budget also doubles the Government’s commitment to the JobTrainer Fund – supporting more than 450,000 new training places.
EXPANDED INSTANT ASSET WRITE OFF
Over 99% of businesses employing 11 million workers can write off the full value of eligible assets purchased.
The expanded Instant Asset Write Off means a tradie can buy a new ute, a farmer a new harvester and a manufacturer expand their production line.
When large businesses invest in assets, it also provides further opportunities for small businesses to sell, deliver, install and maintain these assets.
SMALL BUSINESS FINANCE
The Morrison Government is extending the small business loan scheme, which has already helped more than 45,000 businesses access low cost finance.
At the start of the pandemic (in March 2020) the Morrison Government invested up to $15 billion to enable smaller lenders to continue supporting small businesses and customers.
This complemented the Reserve Bank’s $200 billion lending facility to help increase lending to businesses, especially small and medium businesses.
RED TAPE RELIEF
The Government has cut red tape for businesses, individuals and community groups saving them around $5.8 billion.
We have simplified Business Activity Statements for 2.7 million small businesses.
A Small Business Superannuation Clearing House has been established for businesses with fewer than 20 employees, or less than $10 million annual turnover.
HELPING CASH FLOW
Since 1 January 2020, the Government has been paying its bills within 20 days – and e-invoices within 5 days – for contracts up to $1 million.
SUPPORTING SMALL BUILDERS
Supported by initiatives like HomeBuilder, in March 2021 housing starts increased to be at their highest level in 20 years.
The Morrison Government is further encouraging home ownership by expanding:
- the First Home Super Saver Scheme;
- the First Home Buyer Deposit Scheme (helping first home buyers build a home with a 5% deposit); and
- the Family Home Guarantee (helping single parents purchase a home with a 2% deposit).
Construction businesses are also being supported by our 10 year infrastructure pipeline, which is already supporting around 100,000 jobs – and will support a further 40,000 jobs.
MORE EXPORT OPPORTUNITIES
More exports means more Australian jobs.
We’ve provided more opportunities for exporters through free trade agreements with Japan, Korea, China, Hong Kong, Indonesia and Peru, the 11 nations of the Trans-Pacific Partnership, and the Pacific Agreement on Closer Economic Relations (between Australia, New Zealand and nine Pacific countries).
A new Free Trade Agreement is being finalised with the United Kingdom.
SUPPORT DURING THE PANDEMIC
In response to this crisis, the Morrison Government committed unprecedented support for small businesses.
Over 1 million businesses and over 3.8 million workers were supported by the first phase of JobKeeper – the largest economic support program in Australia’s history.
Small businesses and their employees have also being supported through:
- Cashflow Boost payments, which have provided $35 billion, helping over 800,000 small and medium businesses to stay afloat.
- A 50% wage subsidy, supporting up to 270,000 apprentices and trainees.
- The HomeBuilder program, supporting the residential construction industry.
Small businesses are also supported by measures designed to boost economic activity, including tax relief for workers and support payments for individuals during the pandemic.
Some sectors continue to do it tough. The May 2021 Budget provided a further $2.1 billion in targeted support for aviation, tourism, the arts and international education providers.
Information current as at August 2021