90% Of Dental Industry To Benefit From Company Tax Cut
2nd Apr 17
The passage by the Senate of legislation that provide business with a turnover of less than $10 million a reduction in their tax rate to 27.5% this financial year, and a further reduction to 25.0% of business with a turnover of less than $50 million over the next ten years, will benefit more than 90% of businesses in the dental industry.
Key Issues For The Dental Industry —
The reduction in company tax rates passed by the Senate last Friday will benefit more than ninety per cent of business in the dental industry according to the Australian Dental Industry Association (ADIA).
ADIA, like many peak business organisations, was a strong proponent for the cut to company tax rates. Last week the Association stepped-up its parliamentary engagement as part of a concerted effort on the part of the business community to help secure passage of the legislation. ADIA is therefore naturally supportive of the outcome.
The government’s negotiated outcome with cross-bench senators to amend the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 will see businesses with an aggregated turnover of less than $10 million will receive a reduction in their tax rate to 27.5% this financial year. Over the next ten years, the company tax rate will drop to 25.0% for businesses with an aggregated turnover of less than $50 million.
More than 90% of the businesses in Australia that manufacture and supply dental products will benefit from these cuts to the company tax rate. It will help these businesses to grow, create jobs and operate sustainably.
As part of its policy advocacy in support of the proposed cuts to company taxes, ADIA highlighted how the change will support job creation in Australia’s medical technology sector. ADIA reminded Senators that Australian dental product manufacturers are not alone when competing for overseas capital to fund research and development in the medical technology sector. A lower corporate tax rate provides a competitive platform for Australian businesses to reach out and successfully attract overseas investment.
In supporting the cuts to taxation, ADIA drew attention to the challenges that local dental product manufacturers face when getting new patient diagnostic and treatment solutions to market, noting that compared to many of their overseas competitors, Australian dental product manufacturers face higher wages, higher commercial lease costs, higher freight charges and higher corporate taxes. ADIA has said that these cuts to company tax rates helps create an environment that helps Australian dental product manufacturers become more globally competitive.
ADIA's support for the tax cuts has been sustained and included advice to the Senate Economics Legislation Committee inquiry convened in 2016 that review the revised tax arrangements.
This is a great outcome for business in the dental industry and reflect the position in ADIA's business tax policy statement to reduce the tax burden on business in order to raise Australia's international competitiveness. ADIA's work in this area reflects the commitments made in the ADIA Advocacy Agenda to ensure the dental industry plays a constructive and effective role in the policy debate. Resources to achieve this have been made available by the ADIA Board as a result of commitments made in the 2016-20 ADIA Strategic Plan.
Member Engagement —
Businesses that manufacture and supply dental products drive ADIA's policy advocacy priorities and, with respect to corporate taxation, employees of member businesses do this through the ADIA-BAC Business Affairs Committee with updates provided at the quarterly ADIA State Branch Briefings. If your business has an interest in this matter, get involved today.
Further Information —
For further information for ADIA's activities to support dental product manufacturers and suppliers in this area contact the ADIA Advocacy Team via email at email@example.com. To keep up to date follow ADIA on Facebook at www.facebook.com/dental.industry or subscribe to the Twitter feed @AusDental.
Currency Of Information & Disclaimer —
This update was issued on 2 April 2017 and please note that changes in circumstances after the publication of material or information may impact upon its accuracy and also change regulatory compliance obligations. The statements, regulatory and technical information contained herein are believed to be accurate and are provided for information purposes only. Readers are responsible for assessing its relevance and verifying the accuracy of the content. To the fullest extent permitted by law, ADIA will not be liable for any loss, damage, cost or expense incurred in relation to or arising as a result of relying on the information presented here.
This publication is available for your use under a Creative Commons Attribution 3.0 Australia licence, with the exception of the ADIA logo, images and where stated.
20th Jun 17
The latest edition of the Australian Dental Workforce In Numbers Report shows that the number of dentists in Australia grew by 2.0% in the twelve months to December 2016, the slowest increase in more than five years.
15th Jun 17
Following ADIA's policy advocacy, parliament has passed legislation that will allow the TGA to designate third-party conformity assessment bodies, a move that eases the compliance burden for local dental product manufacturers.