A plan to cut red tape for small and medium businesses will mean less time spent "buried in paperwork", the Treasurer says.
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Ahead of this month's federal budget, Josh Frydenberg on Tuesday revealed a package to cut ongoing tax installments for the coming financial year.
Mr Frydenberg claimed the move will free up roughly $1.85 billion for 2.3 million small-to-medium enterprises across Australia.
And as companies reel from the effects of the COVID-19 pandemic, the package will also include measures to synthesise tax returns between the Commonwealth and states and territories.
"Small and medium businesses are the backbone of our economy, employing millions of Australians," Mr Frydenberg said.
"That's why ... the Morrison government is slashing red tape, freeing up cash flow and ensuring small-to-medium enterprises spend less time buried in paperwork."
Under the plan, the gross domestic product uplift rate on pay-as-you-go and goods and services tax instalments will be slashed to two per cent over the 2022-23 financial year, down from 10 per cent.
Eligible companies, initially numbering around 500,000, will also able to calculate PAYG payments based on their financial performance.
Struggling businesses may also be eligible for refunds, paid automatically, in systems expected to operate from 2024.
And in a bid to streamline tax obligations, eligible companies will be able to report once to meet their Commonwealth and state and territory requirements.
Mr Frydenberg claimed that measure will create an annual saving of $800 million in compliance costs.
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Employment, Workforce, Skills, Small and Family Business Stuart Robert said the package will give small businesses "every opportunity to thrive".
"In challenging and uncertain times, it is important Australia's small and family businesses know their government has their back," he said.
As cost of living pressures rise, and with the aftershocks of the COVID-19 still felt, Mr Chalmers warned stagnant wages "can't be the thanks Australians get" after enduring the pandemic.
"We ask to be judged on the quality of our investments, not just the quantity of the spending," he told the Australian Chamber of Commerce and Industry.