The government is committed to reducing tax rates for small businesses, Finance Minister Penny Wong has told ABC Radio.
A proposed 1% tax cut for small business is due on July 1 this year, but it will be a squeeze: the Business Tax Working Group will not report back until the end of March, leaving only three sitting weeks for it to pass through parliament.
“The government is absolutely committed to reducing the company tax rate, particularly for small business,” Senator Wong said. “In terms of timing, ultimately that’s a matter for the parliament.”
The government is looking to subsidise the tax cuts by passing the Minerals Resource Rent Tax (MRRT), which will go before parliament this week — thus keeping the promise of a surplus next financial year.
“What we’re saying to the parliament is pass the minerals tax. It’s already passed the lower house [and] we need to pass it through the Senate,” says Wong.
The cut would represent the latest in a series of moves the government hopes will help it win support from small business owners.
The government is looking to cut the corporate tax rate from 30 per cent to 29 per cent in 2013-14.