In their pre-election debate the leaders of Australian’s main parties proposed their own positions to taxation. In his opening statement to the leaders’ debate in Sydney, Malcolm Turnbull, Prime Minister of the current Coalition Government, said that he want that their tax system can support our business. In near feature the small business company tax rate will be cut from 28.5 percent to 27.5 percent from July 1, 2016.
The turnover threshold for access to the rate will be increased from AUD2m (USD1.5m) to AUD10m. The unincorporated tax discount will be increased from five percent to eight percent from July 1, 2016 and hope that the discount will be increased to 16 percent on July 1, 2026.
Turnbull also said that while the Government believes in lower business taxes, “paying tax is not optional.” He added that it is the way how they introduce a diverted profits tax (DTP). Bill Shorten, leader of the opposition Labor Party, thinks that is not a suitable time to provide tax cuts to large companies, also he thinks that their small business has billion dollars’ turnover. Also he said that someone who earns a million dollars a year, courtesy of this Government, will pay AUD17,000 less tax next year. The Government showed that from July 1, 2016 the upper limit for the middle-income tax bracket will increase from AUD80,000 to AUD87,000. The federal double dissolution election will take place on July 2.