This proposal has two components.

Component 1 – Increased salary and wage deductions for small companies

• Component 1 of the proposal would allow companies with annual turnovers under $2 million to claim tax deductions equal to 110 per cent of their total wage and salary expenses. The value of the additional deductions would be uncapped, but would not be carried forward.

Component 2 – Increase the goods and services tax (GST) registration threshold

• Component 2 of the proposal would increase the GST registration threshold from $75,000 to $150,000 for general companies, and from $150,000 to $300,000 for not-for-profit organisations. The GST registration threshold would be indexed annually with the consumer price index (CPI).

The proposal would have effect for income years starting from 1 July 2019.

Note: File download updated 20 March 2024 to clarify dollar amount as millions.