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Budget’s small business tax concession a win for pharmacy

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The guild has welcomed the extension of the $20,000 instant asset write-off for small businesses for a further 12 months to 30 June 2018

In addition, the turnover threshold will also be lifted to $10m, five times higher than was originally available.

Guild president George Tambassis, the measure will deliver immediate and tangible benefits to Australia’s 5,600 community pharmacy small businesses.
It will improve cash flow for small business including pharmacies, helping them to reinvest in their business and replace or upgrade their assets.”

The Guild has been working with the Minister for Small Business, the Hon Michael McCormack MP, to have the deductibility measure extended.

The Guild has also welcomed the cut to the small business tax rate to 27.5% will benefit all pharmacies with turnovers up to $10 million a year. The median community pharmacy turnover is around $3 million a year.

Many community pharmacies are unincorporated. For these small businesses with turnover up to $5 million, the tax discount on unincorporated business income will be raised from 5% to 8% with a cap of $1,000 per individual. This helps to ensure that these unincorporated small businesses do not miss out on the benefits of the small business tax cuts.

Mr Tambassis said: “These tax changes will be welcomed by community pharmacies in a difficult trading environment.”

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