Dental industry backs government's corporate tax cuts
23rd Sep 16
ADIA has told a Senate Committee that the dental industry supports legislation to implement the Australian Government's policy commitment to progressively reduce the corporate tax rate for all businesses to 25% over the next ten years.
Key Issues For Consideration —
In order to implement commitments made in the 2016 Australian Government budget, legislation has been introduced into the parliament that amends the Income Tax Rates Act (Cth) 1986 to reduce the corporate tax rate for small businesses with an aggregated turnover of less than $10 million to 27.5 per cent for the 2016-17 financial year and progressively extend that lower rate to all corporate tax entities by the 2023-24 financial year. The legislation also seeks to further reduce the corporate tax rate in stages so that by the FY2026-27, the corporate tax rate for all entities will be 25 per cent.
The legislation also seeks to amend the Income Tax Assessment Act (Cth) 1997 to increase the small business income tax offset to 16 per cent of an eligible individual’s basic income tax liability that relates to their total net small business income from the 2026-27 financial year; and enable small businesses with an aggregated turnover of less than $10 million to access most small business tax concessions, and small businesses with an aggregated turnover of less than $5 million to access the small business income tax offset. There are further proposed amendments to the Income Tax Assessment Act (Cth) 1936 and the Income Tax Assessment Act (Cth) 1997 to make consequential amendments.
On 15 September 2016, the Senate referred the provisions of the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 to the Senate Economics Legislation Committee for inquiry and report on 10 October 2016. As part the process of considering the legislation the Senate Committee has sought stakeholder's views on the legislation.
The Australian Chamber of Commerce and Industry has reviewed the legislation and tendered a submission to the Senate Committee that backs the legislation and the proposed timeframes to progressively reduce the corporate tax rate for all businesses to 25% over the next ten years. ADIA has advised the Senate Committee that it backs the legislation and the commentary offered by the Australian Chamber. A key document that helped framed ADIA's response is the Association's policy statement on business taxation:
ADIA's support for company tax reform is consistent with the objectives set out in the ADIA Advocacy Agenda that seek to provide an environment in which manufacturers and suppliers of dental products can grow, create jobs and operate sustainably.
Member engagement —
ADIA provides leadership, strategy, advocacy and support. Our members set our agenda, fund our activities and directly benefit from the results. With respect to matters associated with business tax policy, ADIA staff responsible for policy advocacy receive advice and guidance from members serving on the ADIA-BAC Business Affairs Committee.
Currency of Information —
This update was issued on 23 September 2016 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, other images and where otherwise stated.
27th Apr 18
At the request of the dental industry the Australian National Audit Office (ANAO) will review proposed new imposts that the Therapeutic Goods Administration (TGA) wishes to place on innovative dental product manufacturers and suppliers
21st May 18
The next edition of the Australian Dental Industry Intelligence Report is currently being prepared, a document that assesses the value of the market for dental products and its growth over the past decade.