Joe Hockey has flagged further concessions to small business ahead of the federal Budget

Photo: Getty Images

It looks like the Australian government is planning to make further concessions to small business in this year’s Budget.

Joe Hockey spoke at the NSW business chamber this morning and said the government would likely be going beyond the 1.5% tax cut for small business already announced.

He said:

That said, small businesses face different challenges from larger businesses and a lower tax rate will help small business get started, grow and compete.

That is why this year we will deliver a package for small business, including a tax cut for small business companies of at least 1.5 per cent.

This is in addition to the reform of taxation arrangements of Employee Share Schemes to provide generous incentives for new start-ups, and the repeal of more and more red tape.

We will continue to make it easier for small businesses to get on with running their business, and the Prime Minister and our Government will have more to say about this in the lead up to Budget.

There are around two million actively trading small businesses in Australia, representing more than 97 per cent of all of Australian businesses.

Last year, Australia witnessed the largest number of start-up businesses in its history.

NOW READ: Joe Hockey Says His ‘Shock Absorber’ Budget Will Help Curtail The Biggest Fall In Terms Of Trade In 50 Years

NOW WATCH: Briefing videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.