In a strategic push to invigorate Australia’s entrepreneurial landscape, the Coalition has unveiled an ambitious blueprint to add 350,000 new small businesses over the next four years, should they secure government. Central to this vision is a suite of targeted tax offsets designed to empower startups at their most vulnerable stages, encouraging risk-taking and innovation across the nation.
The cornerstone of this initiative is the “entrepreneurship accelerator” scheme—a phased tax relief program aimed at easing the financial burden for fledgling businesses. Under this plan, newly incorporated firms would only be taxed on a portion of their income during their first three years, freeing up vital capital for reinvestment and growth.
Specifically, in the inaugural year, startups would only be liable for tax on 25% of their first $100,000 of income. The same threshold would see the tax obligation reduced to half (50%) of the second $100,000 earned. This offset gradually tapers off in subsequent years, easing the transition as businesses mature.
In Year Two, the tax liability would adjust to 40% on the first $100,000 of income and 60% on the second. By Year Three, the scheme would further ease the burden, with businesses paying tax on 50% of their initial income and 70% of the subsequent amount.
The overarching goal: instill confidence among Australians to seize entrepreneurial opportunities, nurturing a vibrant ecosystem of innovation that complements Australia’s existing 2.5 million small businesses. With these targeted incentives, the Coalition aims to foster a culture where taking risks is met with tangible support, paving the way for a more dynamic economic future.
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