Prime minister Malcolm Turnbull has reinforced that the tax cuts for small businesses will still be introduced as previously outlined into parliament, following the outcome of this month’s federal election.
The cuts revealed in May will see the company tax rate for small businesses reduced from 28.5 percent to 27.5 percent. The rate will continue to lower to 25 percent by 2026-27.
The definition of 'small business' will also be widened, with maximum annual turnover for businesses eligible for the new tax rate increased from $2 million to $10 million.
The threshold will continue to rise to $25 million in 2017, $50 million in 2018-19 and $100 million in 2019-20.
As part of the budget, the proposed tax cuts must still pass a vote in the senate when parliament resumes in August.
Turnbull said that if the budget passes, the tax cuts would still take effect from 1 July.
It follows yesterday’s announcement that the small business portfolio has been taken from minister Kelly O’Dwyer and given to new cabinet minister Michael McCormack. O’Dwyer has been shifted to the new role of minister for revenue and financial services.
Turnbull told press that his entire cabinet was focused on small business, and that O’Dwyer’s new title would better reflect her role.
“Right across the board, small business is a relentless focus of every minister, although there is one minister who has that as his title,” he said.
Turnbull also fulfilled his promise of creating a dedicated information security portfolio, with the role of minister assisting the prime minister for cyber security handed to Victorian Dan Tehan.
Other new appointments include former environment minister Greg Hunt taking over Christopher Pyne’s role as minister for industry, innovation and science.
Outgoing assistant minister for innovation Wyatt Roy’s role was not replaced.