The Federal Government is set to give a $720 million cash flow boost to small business, self-funded retirees and small superannuation funds, in an effort to free up cash flow to provide further economic stimulus.
Under the plan, the quarterly PAYG (pay-as-you-go) instalments will be cut for 1.5 million taxpayers in the 2009-10 financial year.
The cut will allow $720 million to stimulate the economy, and help protect small business and Australian jobs.
In a joint statement issued by Treasurer Wayne Swan and Small Business Minister Craig Emerson, the boost will, “better align the tax treatment of small businesses, self-funded retirees, and small superannuation funds with changing economic conditions, and help prevent businesses paying too much tax.”
The PAYG instalments will be cut by about six percent, providing cash flow benefits to 1.5 million taxpayers.
Tax installments will be calculated based on the expected Consumer Price Index increase for 2009/10 rather than using the previous year’s GDP (Gross Domestic Product) growth.
For more information, please visit the Treasurer’s website
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