The Federal Government has released draft legislation that will cut company tax from 30 per cent to 29 per cent. For the 2013-14 income year.


“Today I release draft legislation to cut company tax to help Australian businesses right across the economy - including the many businesses that are not in the mining boom fast lane and face challenges such as those flowing from a higher dollar,” Treasurer Wayne Swan said.


The Government recognises that many small businesses are under extra pressure and so the draft legislation provides a head-start for small business, with the 29 per cent rate applying from 2012‑13.  This will help up to 720,000 small business companies by allowing them to reinvest more of their profits to grow their businesses and employ more Australians.


Mr Swan said cutting the company tax rate will increase productivity, promote broad-based economic growth and encourage more investment.


The move has sparked the ire of the Federal Greens, who have pledged to block the Mining Resources Rent Tax, from where the tax cut is funded, saying that the cut should only apply to small businesses.


The Federal Opposition has pledged to block the legislation as it is funded through the MRRT, which it opposes on all grounds.


The draft legislation can be found here