Cuts to tax rate assist small businesses in SA

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A worker walks near conveyer belts loaded with iron ore at the Fortescue Solomon iron ore mine located in the Valley of the Kings, around 400 km (248 miles) south of Port Hedland in the Pilbara region of Western Australia December 2, 2013.
A worker walks near conveyer belts loaded with iron ore at the Fortescue Solomon iron ore mine located in the Valley of the Kings. Reuters/David Gray

The latest cuts to small business tax rate have assisted companies and generated jobs across rural and regional South Australia, Grey MP Rowan Ramsey announced. Tax rate is now down to 27.5 percent.

“In towns big and small, it’s our farmers, our shops on high streets and our small business services which provide the jobs and opportunities on which regional areas rely,” Ramsey said in a media release. Ramsey and Federal Small Business Minister Michael McCormack have reportedly heard about how Steve Cantell, who runs ActFas Training, purchased two new ambulances to expand his private ambulance business. Cantell plans to utilise his instant tax write-off for his expansion plans.

Ramsey said it was great to have McCormack in Port Pirie so he can hear directly from small businesses in the area. Meanwhile, the latter assured he would visit rural and regional Australia to gather feedback and utilise it by the time the government shapes its policy. McCormack has become the first country MP to hold the portfolio.

McCormack shared how individuals and businesses, Cantell for instance, use the $20,000 instant asset write-off scheme. The program helps small businesses like farmers in buying new equipment they need to grow. According to him, it is not the government that creates jobs, but businesses. “That’s why the Government has cut the small business tax rate to its lowest level in many decades, as well as extending to the $20,000 instant asset write-off,” McCormack added.

He is confident that backing up small business in country communities will help generate local jobs. McCormack said that businesses can keep growing and trying new ideas by using lower tax rate and instant asset write-off extension. Most importantly, businesses can create more jobs in Australia.

Furthermore, small businesses in places like Port PJob vacancies in Australia. The most in demand occupationsirie can use opportunities like better connectivity and new markets open through trade agreements to keep growing local economies. McCormack stressed their message for small businesses is simple, and that is to “have a go.”

According to The West Australian, nearly two-thirds of small businesses were looking forward to the tax cuts as the 2016/17 financial year draws to a close. Business software provider MYOB has conducted a survey, and it has found that more than two-in-five small and medium-sized enterprises plan to use the savings from the tax reduction to invest back into their firms.

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