Home topics finance finance-cash-flow Cashflow News Cashflow Small business’ the big winner with Henry Tax Review David Olsen May 3, 2010 The Henry Tax Review signals big returns for small businesses, with cuts to company tax and long overdue changes to depreciation write off thresholds. “The Government’s tax package recognises that the vast majority of businesses operating in Australia are small businessesi and that’s a very important starting point for tax reform,” said CEO Jaye Radisich. “The new tax measures are set to help improve small business cash flow, support increases in production and productivity and promote innovation and entrepreneurial activity.” But despite the gains through the proposed company tax cut and the improved depreciation arrangements, the Council of Small Business remains concerned that the landmark tax changes are tied to the new 40% Resource Super Profits Tax (RSPT) which is dependent on the RSPT being passed by the Senate. Small business company tax cut “A reduction in the company tax rate is good news for small business companies,” said Jaye Radisich. “Although the Henry Review recommended a company tax cut down to 25%, a reduction from 30% to 28% will still provide a strong cash flow boost for many small business companies. “The ‘head start’ in the company tax rate cut being offered to small businesses means that small businesses will benefit from the cut in three years’ time instead of four. “It is likely that the reduction in the company tax rate will encourage more entrants into the