The association has given its approval to the Federal Government's tax instalment system
The National Road Transport Association (NatRoad) positively greets the Federal government’s pre-budget announcement of an overhaul to the Pay-As-You-Go (PAYG) tax instalment system for small businesses.
The PAYG reform will form a major part of a $800 million small business and sole trader package that was announced ahead of next week’s Federal budget.
The government will look to alter the uplift rate used to calculate quarterly PAYG instalments from next financial year onwards.
The updated uplift rates for PAYG instalments will be based on the previous year plus two per cent, instead of the current 10 per cent.
If the earnings a business makes exceed the amount calculated, then the business will need to pay the extra tax at the end of the financial year.
“Operators and traders who are sole traders will appreciate this smoothing of bumps in the economic road,” NatRoad CEO Warren Clark says.
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“NatRoad notes the government’s commitment to lowering business costs in the fuel sector by allowing businesses with an annual turnover of less than $50 million to lodge and pay excise quarterly from July 1, 2023.”
The government says the lower uplift rate is expected to deliver $1.85 billion in cash flow support for 2.3 million small to medium businesses, sole traders and individuals.