News & Views

18th April 2017

Company tax cuts benefit small and medium enterprises

05 Apr 2017

The Federal Government has reached agreement with Senate cross-benchers to deliver lower company tax arrangements for small and medium-sized enterprises.

Following last week’s negotiations and Senate outcome, company tax will be reduced for more than three million small and medium-sized businesses across Australia. Companies with a turnover of less than $10 Million will receive a reduction in the company tax rate from 30 per cent to 27.5% in this financial year whilst the cut is extended to business with a turnover of less than $25 Million in 2017-18 and up to $50 Million in 2018-19.   The Government’s long-term plan to reduce the Company Tax rate to just 25%, in line with the Henry Tax Review remains in place.

“NECA welcomes these company tax cuts as a “win” for the electrical contracting sector – an industry where up to 90% of businesses fall into the small and medium-sized business category,” said NECA CEO Suresh Manickam.

“Company tax reduction is a critical step to assisting the growth and competitiveness of our industry, allowing our businesses to create additional employment opportunities. NECA has been on the record, calling upon the Government to set a guidance and future strategy for the Henry Tax review recommendation to reduce the company tax rate to just 25%.”

“We are very pleased with last week’s outcome in the Senate.  We commend those who were willing to work together in order to improve the lot of Australia’s electrical contractors – particularly Senator Cormann, the Minister for Finance, who led the negotiations.  This is a true win for our industry,” said Mr Manickam. 

 

-ENDS-

 

Media enquiries and interviews

Barry Jackson – National Marketing and Communications
barry.jackson@neca.asn.au
D 02 9962 6904
M 0457 767 328

 

Notes for editors

  1. NECA is the peak industry body representing the interests of electrical and communications contractors Australia-wide.
  2. NECA is run by electrical contractors, for electrical contractors.
  3. We have 5,000 contracting companies as members – and they in turn employ over 50,000 people Australia-wide.
  4. NECA employs almost 350 people across its seven chapters (Queensland, New South Wales, ACT, Victoria, Tasmania, South Australia and Western Australia).
  5. The chapters provide NECA members with a range of services including: Industrial Relations, Health & Safety, Legal, Technical, Training, business-support services, product discounts and advocacy representation in Canberra with Government, Industry bodies and Training bodies.
  6. NECA wholly-owns its Legal firm, Group Training and the NECA Colleges (in WA) and EcoSmart Electricians – and has joint ventures with a superannuation company (NSW) and one of the national cabling registrars (ACRS).
  7. NECA also employ around 2,000 apprentice electricians and provides training to a further 2,000.
  8. For further information go to www.neca.asn.au.

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