Many small businesses have welcomed the Coalition's promise to cut the company tax by 1.5 per cent.
Opposition Leader Tony Abbott announced earlier today that a Coalition government would cut the company tax rate to 28.5 per cent from 30 per cent as of July 1, 2015, at a cost of $5 billion.
Australian Chamber of Commerce and Industry chief executive Peter Anderson describes it as a sensible proposal that would be good for jobs and confidence.
"But it needs to be part of a broader plan to strengthen the economy and be fully funded so the budget can return to surplus over the cycle," Mr Anderson said in a statement.
He said while half a million small and medium sized business would benefit from the tax cut, many micro businesses trade as partnerships or unincorporated small traders, paying income tax rather than company tax.
News that makes sense
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SBS reporter Leigh Hatcher visited Encitech, in Sydney's west - a classic small business story. It employs 17 people, manufacturing a specialist electro-chemical system.
Australia has two million small businesses, but in just one year, 20,000 of them, with an annual income of $50,000 or less, folded. So, they'd love to see a company tax cut.
Watch the video above for the full story.
