The proposed company tax cuts announced in the 2018/19 Federal Budget are in line with recommendations made by the National Electrical and Communications Association (NECA) in its Federal Pre-Budget 2018/19 submission.

“For a small to medium business, a cut in the company tax rate is significant and will support the ongoing success of sole traders and small to medium businesses,” says NECA chief executive Suresh Manickham.

“Over 82% of businesses within the electrotechnology sector employ less than 25 staff and we believe that tax reduction is critical to encourage growth and competition across the industry. Tax cuts will allow businesses to invest, which will in turn provide greater employment and economic opportunities.”

NECA also notes that these proposed tax cuts are within the spirit of the recommendations made by Ken Henry a number of years ago.

Suresh says NECA welcomes the proposed tax cuts and encourages all Senators to show their support to ensure they are implemented, adding a stimulus to the economy and helping increase employment.