The reduction in company tax rates passed by the Senate last Friday will benefit more than 90 per cent of businesses 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 we stepped up our parliamentary engagement as part of a concerted effort by the business community to help secure passage of the legislation. ADIA is therefore naturally supportive of the outcome,” said Troy Williams, CEO of ADIA.
The government’s negotiated outcome with crossbench senators to amend the Treasury Laws Amendment (Enterprise Tax Plan) Bill 2016 will see businesses with a turnover of less than $10 million receive a reduction in their tax rate to 27.5 per cent this financial year. Over the next 10 years, the company tax rate will drop to 25 per cent for businesses with an aggregated turnover of less than $50 million.
“More than 90 per cent 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,” Williams said.
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 property lease costs, higher freight charges and higher corporate taxes.
Williams concluded: “The cuts to company tax rates helps create an environment that helps Australian dental product manufacturers become more globally competitive.”