The government is fast tracking tax cuts for smaller companies

Steve Christo/Corbis via Getty Images
  • The Coalition plans to bring in tax cuts for smaller companies five years earlier than planned.
  • The company tax rate for companies with sales under $50 million would fall to 25% by 2026-27.
  • Treasurer Josh Frydenberg says the move is a challenge for Labor which has said it wants to keep the rate at 27.5%.

The federal government is challenging the Labor Opposition with a plan to introduce earlier than planned a series of tax cuts for small and medium-sized businesses.

The Coalition wants to implement tax cuts worth $3.2 billion for 3 million companies with revenue of up to $50 million five years earlier than expected.

The company tax rate has already been sliced to 27.5% from 30% and, under the new schedule, would fall to 25% by 2026-27.

The Opposition wants to keep the cut at 27.5%.

Morrison said the government will introduce the legislation during the next session of parliament.

The tax cuts passed through parliament in March last year. Plans to extend these cuts to bigger companies were knocked back in the Senate.

Treasurer Josh Frydenberg says the change, to be introduced to parliament in the next two weeks, would be a “real test” for the Opposition leader.

“We know he (Opposition Leader Bill Shorten) already wants to rip up our legislated tax relief and make each one of those three million small businesses pay more than they have to,” says Frydenberg.

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